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TMI Blog2018 (8) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... MW Thermal Power Plant at Chandrapur by M/s. Maharashtra State Power Generation Company Ltd. (MAHAGENCO) under International Competitive Bidding. Goods supplied to Mega Power Projects are entitled to excise duty exemption as well as exemption from the whole of Customs duties subject to the conditions prescribed. The excise duty exemption for goods supplied to Mega Power Projects is available under Sl.No.91 of notification 6/2006 CE dated 1.3.2002, subject to the following conditions: a) The goods are supplied against International Competitive Bidding (ICB) b) The goods, when imported into India are exempted from the duties of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 and additional duty leviable under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of existing power project. The project having been mentioned in the bid documents as well as Joint Secretary Certificate dt.16/12/2009 as 'expansion', the appellants are not entitled for excise duty exemption under Sl.No.91 of Notification 6/2006-CE dt.1/3/2006. Show cause notice dt.7/12/2010 was issued proposing to deny the exemption under the notification and for recovery of duty for the period November 2009 to May 2010 alongwith interest and for imposing penalties. After due process of law, the Commissioner confirmed the payment of duty of Rs. 10,18,31,467/- alongwith interest and imposed penalty of Rs. 1,01,83,150/- under rule 25 of Central Excise Rules, 2002. The amount of Rs. 4,66,29,644/- already paid by the appellant was ordered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore it is clear that the project has been recognised/has been accepted by the Government to be a Mega Power Project being set up by MAHAGENCO. 3.1 It is further submitted by the Ld.Counsel that in the appellants own case (Tiruchi Unit) a similar Show cause notice was issued and vide Order-In-Original No.2/2013 dt.26/3/2013, the demand was dropped in respect of the same project for the subsequent period March 2011 and February 2012. That to the knowledge of appellants, the department has not filed any appeal against the aforesaid Order-In-Original and therefore the decision stands accepted by the department. It is a settled legal decision that if the issue has attained finality, the department is not permitted to take a different stand esp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th December, 2009 TO WHOM IT MAY CONCERN a) Certified that Chandrapur Expansion Power Plant being set up by Maharashtra State Power Generation Co. Ltd. Mumbai (MAHAGENCO) is a Thermal Power Plant of capacity of 1000 MW (2x500 MW). b) Certified that (i) the power purchasing States have constituted the Regulatory Commissions with full powers to fix tariff; (ii) the power purchasing States shall undertake to carry out distribution reforms as laid down by Ministry of Power. Sd/- (I.C.P.Keshari) Joint Secretary to the Government of India 7. It can be seen that even though the word expansion is used, it is clearly stated that the power project is being set up by MAHAGENCO. The appellants had taken up the issue with MAHAGENCO and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the terminal excise duty exemption on supplies made by the vendors (BHEL, etc) to the Project, it hereby stated that: (i) the mega certificate has been issued to the aforesaid project on the basis of the proposed installed capacity and fulfilment of other applicable conditions as evidenced from the documents submitted by the MAHAGENCO Project. (ii) the Units 8 & 9 of 500 MW each at Chandrapur Project of MAHAGENCO is an independent power project and not an expansion project of a Mega Power Project in terms of notification No.137/2009-Customs dated 11th December,2009. This is also corroborated by the fact that the existing facilities (i.e., Units 1 to 7) have not been certified as a Mega Project. Sd/- (I.C.P.Keshari) Joint Secreta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that it is only "expansion" and not "setting up". One single project cannot have two different statuses. I am inclined to follow the status as recognized by the Ministry of Finance itself under Sl.No.507 of Notification No.12/2012-Cus as amended on 10.09.2012. This does not amount to any retrospective exemption. The effect of the amendment dated 10.09.2012 is only to communicate and clarify the status of the projects, which should be taken to mean that it was always meant to be so. 4.16 In view of the above discussion, I hold that the goods supplied by M/s.BHEL against ICB to the Chandrapur and Bhusawal Mega Power Projects during the period from March 2011 to February 2012 qualify for the exemption under Notn.No.6/2006-C.E. dated 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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