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2014 (3) TMI 703 - CESTAT CHENNAIReversal of CENVAT Credit - Final product supplied under international competitive bidding to mega power projects. - Exemption under Notification No. 6/2006, S. No. 91 - Held that:- , there are exceptions provided under Rule 6(6) of CENVAT Credit Rules. One such exception under Rule 6(6)(vii) applies to goods supplied against international competitive bidding. In the present case, not only the ‘circuit breakers’ have been supplied against international competitive bidding but also the ‘mandatory spares’. It was the Government’s policy to treat supply against an international competitive bidding on par with exports and grant exemption. In the case of exports, the goods are not only supplied duty-free but also the exporter is allowed to either get a refund of the duty on the inputs or a drawback. Equity demands that the appellants who have supplied the impugned goods against international competitive bidding are not burdened with the duty on the inputs which have been supplied along with the main equipment as ‘mandatory spares’, without which they could not have fulfilled their obligation under the international competitive bidding - Decided in favour of assessee.
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