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2015 (4) TMI 690 - CESTAT NEW DELHI

2015 (4) TMI 690 - CESTAT NEW DELHI - 2016 (343) E.L.T. 702 (Tri. - Del.) - Whether the parts of the boilers of Biomass Energy Producing Systems being manufactured by the respondent and which are not consumed within their factory but are used in the factory of ISGEC, Yamunanagar, Haryana, would be eligible for exemption under notification no.6/2002-CE (Sl.No.237) - Held that:- Respondent manufacture certain components of boilers of Biomass Energy Producing System. The boilers for Biomass Energy .....

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ry which are captively used for manufacture of non-conventional energy devices/systems. - We find that the identical issue has been considered by the Apex Court in its judgement in the case of Binny Ltd. reported in [2006 (3) TMI 150 - SUPREME COURT OF INDIA]. In that case, M/s. Binny Ltd. were manufacturing roof structures to be used for roofing of the digester of the biogas plant. But M/s. Binny Ltd. were not manufacturing the biogas plant or its digester but were supplying the roof struc .....

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ellant : Shri M. S. Negi, DR. For the Respondent : Shri Amit Jain, Advocate ORDER Per Rakesh Kumar: Facts leading to filing of this appeal by the Revenue and filing of cross objection by the respondent are as under:- 1.1 The respondent manufacture different types of fabricated items like accessories for boilers and tubes and pipes fittings etc. falling under Chapter Heading No.8402.90 and 7307.00 of the Tariff. The period of dispute in this case is from Jan. 2002 to Feb. 2003. The respondent sup .....

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on covers, Agriculture/Forestry, agro industrial, industrial, municipal and urban waste conversion devices producing energy and Sl.No.21 of the List No.9 covers, parts consumed within the factory of production of such parts for manufacture of goods specified at Sl.No.1 to 20 above . The Department is of the view that the goods manufactured by the respondent are parts of Biomass Energy Producing Systems but since the same are not consumed within the factory of production of such parts for manufac .....

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against the above order of the Joint Commissioner before the Commissioner (Appeals). The Commissioner (Appeals) vide order-in-appeal dated 30.12.2005 allowed the appeal on the ground that what is covered under the exemption notification no.6/2002-CE (Sl.No.237) is non-conventional Energy Devices/Systems specified in List 9 of the Notification and that the goods, in question, produced by the Respondent are device as a device is something made for a purpose. 1.2. Against the above order of the Co .....

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ist 9 covers Agriculture /forestry, agro industrial, industrial, municipal and urban waste conversion device producing energy , Sl.No.21 of the List 9 covers parts consumed within the factory of the production of such parts for manufacture of the goods specified at Sl.No.1 to 20 above , that in view of this, exemption under this notification would be applicable only to those parts which are consumed in the factory of their production for manufacture of biomass energy producing systems, that Biom .....

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reported in 2001 (136) ELT 1337 (Tribunal-Chennai) while interpreting the similar exemption notification no.205/88-CE, which prescribed nil rate of duty for Agricultural and municipal waste conversion devices producing energy, held that M/s. Binny Ltd. producing roofing structures for Agricultural and municipal waste conversion devices producing energy, which is used with the digester of the bio gas plant being manufactured by another manufacturer, would not be eligible for this exemption, as S .....

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he Apex Court upheld the Tribunal s order observing that to claim the exemption notification no.205/88-CE the assessee has to either manufacture the biogas plant or biogas engines as per the Entry No.14 of the exemption notification, or parts thereof which are consumed within the factory and since the assessee is neither manufacturing bio gas plant nor using the manufactured parts used for the manufacture of bio gas plant within the factory premises, he would not be eligible for the exemption, t .....

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omass Energy Producing System are manufactured by ISGEC, Yamunanagar, Haryana and the same can be treated as Biomass Energy Producing Devices. The point of dispute is that as to whether the parts of the boilers of Biomass Energy Producing Systems being manufactured by the respondent and which are not consumed within their factory but are used in the factory of ISGEC, Yamunanagar, Haryana, would be eligible for exemption under notification no.6/2002-CE (Sl.No.237). 8. The exemption notification n .....

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os. of List 9 cover various Non-conventional Energy Devices / Systems. From a bare reading of the List 9, it is seen that it covers various Non-conventional Energy Devices/Systems and also their parts, which are consumed within the factory for manufacture of non-conventional energy devices/systems. Sl.No.237 of the Table annexed to the notification no.6/2002-CE has to be read with List No.9 and its scope would be confined to what is mentioned in the List 9. Since the scope of entry against S.No. .....

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herefore, in our view, the parts of the Non-conventional Energy Devices/Systems would be covered for full exemption duty under this exemption only when such parts are used within the factory in which the same have been manufactured for manufacture of non-conventional energy producing systems. In other words, this exemption notification is applicable only to those parts manufactured in a factory which are captively used for manufacture of non-conventional energy devices/systems. We find that the .....

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