TMI Blog2008 (12) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... J) Ms. Joy Kumari Chander, JCDR, for the Appellant. S/Shri G. Natarajan and Samir Chakraborthy, Advocates, for the Respondent. [Order per : T.K. Jayaraman, Member (T)].- These appeals have been filed by the Revenue against the following Orders-in-Appeal No. whose details are given below: Sl. No. Appeal Nos. Name of the party OIA Nos. Amounts involved 1. E/273/2008 M/s. IVRCL Infrastructures Projects Ltd. Nalgonda District 63/2007 (H-III) dated 31-12-2007 Duty Rs.1,35,61,265/- and Education Cess Rs. 2,71,223/- 2. E/274/2008 M/s. NCCSMC (JV) Nalgonda District 64/2007 (H-III) dated 31-12-2007 Duty Rs. 4,77,83,964/- and Education Cess Rs. 9,56,679/- 2. We heard both sides. 3. The respondents were awarded with contract for the manufacture and supply of pipes for Krishna Drinking Water Supply Project-II by M/s. Hyderabad Metro Water Supply and Sewerage Board. They claimed exemption from payment of appropriate Central Excise Duty under Notification 6/2002-C.E. dated 1-3-2002 as amended by Notification No. 47/2002-C.E. dated 6-9-2002. The assessments were done on pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in as much as it does not specifically certify that the impugned pipes are intended for drawl of water from the source to the water treatment plant for from thereon to the storage facility. The District Collector has merely stated that the pipes are required for execution of the Krishna Drinking Water Supply project, Phase-II and that the certificate is issued at the instance of M/s. HMWSSB for claiming the exemption of Excise duty as per the relevant circular and notification. In my opinion, the certificate should have been more specific and not too general, as seen in the instant case. Nevertheless, it is an undisputed fact that the pipes have been used in the execution of drinking water project and the benefit of exemption cannot possibly be denied to the appellants merely on the basis of certain technical flaws in the certificate issued by the District Collector. Moreover, it is seen that the only ground on which the department has sought to deny the benefit of the Notification in question to the appellants is that the pipes were used for drawing water from one storage point to various other storage points before finally getting stored at the master-balancing reservoir at Gun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication is a categorical one and cannot be construed to be of a clarificatory nature. In a nut shell, while the earlier Notifications only referred to a 'storage facility'. And did not make any distinction between the first or subsequent storage points, the present notification clearly limits the exemption only up to the first storage point, in case of pipes of outer diameter not exceeding 20 cm. After 1-3-2007, the exemption is unambiguously available to all pipes of outer diameter exceeding 20 cm provided they form an integral part of the water supply project. As seen from the certificate issued by the District Collector, Nalgonda, the impugned pipes are of 2375 mm diameter and hence after 1-3-2007, the benefit of the Notification is clearly available to the appellants. For the period prior to 1-3-2007, I have discussed in para supra that the appellants are eligible for exemption from payment of Excise duty in terms of the relevant Notifications. 4. Revenue is aggrieved over the impugned order on the following: (i) As per the Notification, the exemption is available to first stage of storage only, the same is evident as a clarification has been incorporated in the notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the water should be delivered only to the first storage point, as has been provided in the amended notification with effect from 1-3-2007. It is obvious that the unamended notification would have to be interpreted to cover the impugned pipes which were needed to deliver water not only to the first storage point but also to the second and subsequent storage point, such as elevated storage reservoirs where the water was further treated for chlorination. If it was the intention of the government to restrict the exemption for pipes up to first storage point, the notification should have been accordingly worded from the beginning. In the absence of such a restriction, the respondents have executed the work order in respect of water treatment plants which are of public utilities and the concerned District Collectors have also given them the necessary certificates in respect of the exemption Notification as it was in its unamended form. Even after storage point. In other words, the amended notification also allows exemption to pipes which are used beyond the first storage point, but in respect of only higher dimension. As regards the ground of the Department that the communication iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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