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TMI Blog2015 (1) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... . Balrampur Chini Mills Ltd. (BCML) was imposed. 2. The brief facts of the case are that M/s. Teknik Plant & Machinery Manufacturing Co. Pvt. Ltd., Pune (appellants) manufactured Fuel and Ash Handling System (goods) falling under Chapter 8428.90 of Central Excise Tariff Act, 1985. The appellants supplied the goods to M/s. BCML without payment of duty under Annexure-I Certificate under Procedure laid in Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rule 2001, claiming exemption under Serial No. 237 of Notification No. 6/2002 on the basis that the goods are used for non-conventional renewable source bagasse based cogeneration plant which is a waste conversion device producing energy. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egral part of the bagasse based electricity generation system that is the waste conversion device producing energy manufacturing in M/s. BCML because without the ash handling system the boiler and steam generator which convert energy cannot function and it is the ash handling system which moves the bagasse to the boiler. 5. Learned A.R. reiterated the grounds taken in the Commissioner's order confirming the demand of duty. He stated that the ash handling system is not a conversion device which produces energy and, therefore, the goods are not eligible for exemption under Notification NO.6/2002-CE dt. 1.3.2002. He further emphasised that even if the goods are considered as parts of the device producing energy, exemption under Serial No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which generates electricity. It is quite clear that the ash handling system only feeds the boiler with the biomass. By no stretch of imagination can this system be called waste conversion device that produces energy. What produces energy is the steam turbine generator or atmost, the boiler and the steam generator taken together. The word which is used at Sr. No. 16 of List-9 is "Device". The word used is not "Plant" in which case the ash handling system could be considered as part of the plant. Therefore, the goods namely ash handling system are not eligible for exemption. Even if this system is considered as part of the waste conversion device for which exemption is available at Sr. No. 21 of List-9, we note that the exemption is availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtified after re-warehousing were continuously submitted to their Superintendent of Range-V, Pune. It is to be noted that these facts are not disputed by Revenue. It is also stated by the Ld. Consultant that Annexure-I is still "live" and has not been cancelled by the Central Excise authorities. The Commissioner (Appeals) in her order acknowledges that the Annexure has been signed by the AC/DC Central Excise but has not raised the question of cancellation of Annexure 'I'. In fact the Commissioner (Appeals) states that Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rule 2001 procedure is not applicable but at the same time does not go into the question of validity of Annexure-I or th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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