TMI Blog2017 (6) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... y those parts which are captively used in manufacture of complete conventional energy systems. Therefore, in our view, the parts of the Non-conventional Energy Devices/Systems would be eligible for full exemption from duty under this notification only when such parts are used within the factory in which the same have been manufactured for manufacture of non-conventional energy producing systems. As the appellant is neither manufacturing Biomass Energy Producing Device/System nor using the manufactured parts for manufacture of Biomass Device/System within the factory premises, they are not eligible for benefit of the notification. Since the demand of duty against the respondent is being upheld without extending the benefit of exemption, the impugned goods are no longer exempted goods. As a consequence thereof, the appellant will go out of the purview of the Rule 6(3) (b) of Cenvat Credit Rules, 2004 and the Cenvat Credit reversed by them @ 8% would no longer required to be reversed. Hence the same is required to be adjusted against the total demand of duty. Appeal allowed - decided in favor of appellant. - E/1035/2006/2008 - A/61184/2017-EX[DB] - Dated:- 16-5-2017 - Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnexed to the Notification No.6/02-CE and entry at Sl.No.16 and 21 of list 9. His basic point that Sr.No.21 covers parts consumed within the factory of production and all such parts should be consumed for manufacture of the goods specified in Sl.No.1 to 20 of the notification. Accordingly, he argued that the exemption was available only to those parts which were consumed in the factory of production for manufacture of Biomass Energy Producing Systems. Since in the instant case parts of the Biomass Energy Producing Systems are not used within the factory where the same are produced, they are not covered by Sl.No21 of the List 9 and since the goods are only parts, not complete energy producing system, the same are also not covered by Sl.No.16 of the List 9. He relied on the following the judgement in his favour: (i) CCE, Chennai Vs. Binny Limited-2001 (136) ELT 1337 (Tri.-Chennai) (ii) Binny Limited Vs. CCE, Chennai-2006 (197) ELT 334 (SC) (iii) GERB vibration Control Systems (P) Limited Vs. CCE, Bangalore-2008 (223) ELT 390 (Tri.-Bang.) 3. Learned Advocate submitted that they had supplied various equipment to the end user but for practical reasons could not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 16 of the List 9 covers Agricultural, Forestry, Agro-Industrial, Municipal and Urban Wastes conversion devices producing energy . Sl. No. 21 of this List a covers, parts consumed within the factory of production of such parts for manufacture of goods specified at Sl. Nos. 1 to 20 above . Other Sl. Nos. of List 9 cover various Non-conventional Energy Devices/Systems. From a plain 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-C.E. has to be read with List No. 9 and its scope would be confined to what is mentioned in the List 9. 7. In this case, the respondent manufacture certain components of boilers of Biomass Energy Producing System. The boilers for Biomass Energy Producing System are manufactured by ISGEC, Yamunanagar, Haryana. The point of dispute is whether the parts of the boilers of Biomass Energy Producing Systems being manufactured by the respondent are devices producing energy in terms of Sr. No.16 of List 9. Further, whether the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstant move of the effluent inside the tank is maintained by pumping system and the bacteria as added at the commencement of the project is the cause for action inside the tank. There is no dispute on the question that the digester comes into existence at the site when it is placed on civil construction carried out at the site. To claim exemption under the exemption notification, the appellant has to either manufacture biogas plant or biogas engine as per Entry 14 or parts therefore which are consumed within the factory. The appellant is neither manufacturing biogas plants nor using the manufactured parts used for the manufacture of biogas plants within the factory premises. 10. The ratio of the above judgment is squarely applicable to the facts of the instant case. As the appellant is neither manufacturing Biomass Energy Producing Device/System nor using the manufactured parts for manufacture of Biomass Device/System within the factory premises, they are not eligible for benefit of the notification. 11. As for the contention of the respondent that the duty should be demanded from the buyer of the goods, we find that the clearance of the exempted goods from the factory g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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