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TMI Blog2019 (11) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... hermal Power Corporation Limited. By an agreement dated 31-7-2012, the petitioner entered into a contract with M/s. Madhya Pradesh Power Transmission Company Ltd. for supply of two 315 MVA, 400/220/33 KV Transformers valued at Rs. 13,90,00,000/- ex-works. It is not in dispute that the aforesaid contract was awarded to the petitioner under an International Competitive Bidding, for the undertaking of a project, namely, the Madhya Pradesh Transmission System Modernization Project that was financed by a multilateral Agency called "Japan International Cooperation Agency [JICA]". The latter Agency has been notified by the Department of Economic Affairs, Ministry of Finance as an Agency entitled for the benefit of deemed exports under Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under clause 8.3 in Chapter 8 of the Foreign Trade Policy. It is the stand of the 5th respondent, therefore, that the petitioner is entitled for the benefit of exemption from terminal excise duty, where supplies are made against International Competitive Bidding. The stand of respondents 1 to 4, on the other hand, as revealed from their counter-affidavit, is that, inasmuch as the petitioner does not satisfy the conditions for exemption from excise duty as envisaged in the Central Excise Exemption Notification No. 12/2012-C.E., dated 17-3-2012, although its supplies would qualify for the benefit of deemed export status, the said supplies would not qualify for the benefit of terminal excise duty exemption, since, they do not satisfy the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy, its entitlement for the benefits accruing to deemed exports has to be acknowledged, subject to the other provisions of the Foreign Trade Policy. It is evident that under clause 8.3 of the Foreign Trade Policy, one of the benefits for deemed exports is the exemption from terminal excise duty where supplies are made against International Competitive Bidding. In Ext.P8 communication that is impugned in the writ petition, the respondents also do not deny that the petitioner is entitled for the benefit of exemption from terminal excise duty considering the status of the supplies effected by it as deemed exports. The only ground raised for rejecting the claim for exemption from terminal excise duty is that the petitioner did not comply wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of the Notification issued in terms of Rule 19 of the Central Excise Rules, 2002, then his entitlement for the benefit of exemption from terminal excise duty has to be recognized in accordance with the provisions of Chapter 8 of the Foreign Trade Policy read with the Central Excise Rules, as noted above. I therefore find that Ext.P8 communication, to the extent it denies the benefit of exemption from terminal excise duty to the petitioner, for removal of the two transformers, cannot be legally sustained. The writ petition is accordingly allowed, by quashing Ext.P8, and declaring that the petitioner is entitled for exemption from terminal excise duty in respect of the supplies of the two transformers. 5. It is brought to my notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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