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TMI Blog2023 (6) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... nt gaskets. They are a sub-contractor of the main contractor ie M/s.Larsen & Toubro Ltd (L&T) for a power project awarded by M/s. Cairn Energy India Pty. Ltd. under International Competitive Bidding. The appellant has cleared 8525 numbers of gaskets valued at Rs.15,92,077/- claiming exemption from duty under Notification No. 6/2006 CE dated 1.3.2006. Revenue sought to deny the claim of exemption from duties under the said notification, since the Project Authority Certificate (PAC) was issued by M/s. Cairn Energy India Pvt. Ltd. to the IGP unit situated at Kottivakkam and not to the appellant unit, which is situated at Sembakkam. After due process of law, the adjudicating authority vide Order in Original held that claim of exemption was erro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the supply of 36544 numbers of gaskets with a total value of Rs.48,75,765/-. Subsequently, L&T has issued a purchase order (PO) bearing PO NO. HEM US/45000-57146/KPS dated 25.3.2009 to IGP Engineers for supply of the said goods. Both the LOI and PO were addressed to IGP Engineers office at Valmiki Street. Against the above order, the appellant was required to supply the goods from their Kottivakkam unit. However, due to certain operational convenience Kottivakkam unit cleared 8525 numbers of semi-finished gaskets to the appellant unit at Sembakkam on payment of duty for further operations. The Sembakkam unit processed the said gaskets and cleared the same to M/s. L&T by availing the benefit of exemption under Notification 6/2006-CE date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the PAC was in the name of Kottivakkam unit and not in the name of Sembakkam unit on the date of clearance of the impugned goods from Sembakkam unit. He hence prayed that the impugned order may be set aside and the appeal be allowed. 3.2 We have Shri N. Sathyanarayanan learned AR on behalf of Revenue. He stated that the system of allowing exemption based on PAC issued by the Project Authority is to ensure that the exemption is not misused by unscrupulous elements and since the payment of duty has to be on the date of clearance of goods, the PAC issued should predate the clearance. Further although the appellant has alluded to a fresh PAC being issued in the name of the Sembakkam unit it was found that there were discrepancies in the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made to the same project. Annexure I to the split PAC's Nos. 188 & 189 certified by the main contractor also mentions the LOI/PO number and date. Revenue was of the view that the system of allowing exemption based on PAC issued by the project authority is to ensure that the exemption has not been mis-used by unscrupulous elements and as the payment of duty has to be as on the date of clearance of goods, the PAC issued should predate the clearance. While this is correct, the appellant has mentioned the split in supply of gaskets to be caused by operational conveniences, which is not unusual in business dealings. They have further got a split PAC issued which is for the quantities cleared by both the units towards the same LOI/PO for the po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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