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2023 (11) TMI 148 - AT - Central ExciseRefund of duty paid under protest - Department is of the view that goods cleared are not used at the water treatment plant itself and therefore the benefit of notification is not available to the goods - eligibility for the benefit of exemption of the Notification 6/2006 dated 1/3/2006 - HELD THAT:- The condition no. 23 of the said notification for availing the exemption is that the assessee has to produce a certificate issued by the District Collector, certifying that the goods are intended for use as specified in column 3 of the table. In column 3 of the table as per para (1), all items of machinery, including instruments apparatus and appliances, auxillary equipment and other components / parts required for setting up of water treatment plant is eligible for exemption. The department has denied the exemption alleging that the goods are used for the sub station / pumping station as part of the water supply project and not specifically at the water treatment plant. Similar issue was considered by the Tribunal in the case of M/S MAN INDUSTRIES (INDIA) LTD, M/S SUBHASH PROJECTS & MARKETING LTD, M/S THE INDIAN HUME PIPE CO. LTD VERSUS COMMISSIONER CE & ST (LTU) MUMBAI [2019 (5) TMI 367 - CESTAT MUMBAI]. The issue under consideration was whether the benefit of Notification is available to the pipes which were used beyond the first storage facility. The Tribunal held that the assessee would be eligible for the benefit of notification. In the case of P & C CONSTRUCTIONS P. LTD. VERSUS COMMISSIONER OF CUSTOMS & CENTRAL EXCISE, SALEM [2017 (8) TMI 1045 - CESTAT CHENNAI], the Tribunal observed that when certificate has been issued by District Collector, and TWAD Board stating that the goods are intended for setting up of the water treatment plant, the department cannot deny the exemption. The issue was in respect to the eligibility of credit on PSC pipes which were used for setting up of the water treatment plant and needed for carrying water from its source to the plant and from there to the storage facility. The Ld. AR has relied upon the decision in the case of M/S. PRECISE ENGINEER VERSUS COMMISSIONER OF CENTRAL EXCISE & ST, VADODARA [2019 (3) TMI 944 - CESTAT AHMEDABAD]. On perusal of the facts of the case, it is seen that the goods on which exemption was claimed by the appellant was Extension Bellows. The assessee claimed that these are components of water treatment plant. However, the facts do not show that the appellant had produced certificate issued by the District Collector stating that the goods were intended for setting up of water treatment plant. The rejection of the refund claims is not justified. The impugned orders are set aside - appeal allowed.
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