By TIOL News Service

MUMBAI, JAN 17, 2015: THERE were three appeals before the Bench.

The first appeal was filed by M/s. Rakhoh Enterprises (Rakhoh) who were issued SCN denying the benefit of Notification No. 06/2006-CE dt. 1.3.2006 as amended to the excisable goods namely Anchor Rings and Load Spreading Plates (LSP) manufactured by them and cleared to M/s. Suzlon Gujarat Wind Park Ltd. Duty of Rs.5.36 crores was confirmed for the period Feb 2008 - Jan. 2013 along with equivalent penalty and interest.

The second & third appealswere related to M/s. Gemini Instratech Pvt. Ltd. (Gemini), who were denied benefit of exemption under notification No. 6/2006-CE dt. 1.3.2006 on the goods namely, wind mill doors, manufactured by them and cleared during the period October 2006 to September 2008. The demand involved was more than Rs.1.03 crores.

The Division Bench vide its order M/1820/14/EB/C-II dated 13.08.2014/25.09.2014 issued on 08.10.2014 held as under -

CE - Notfn. 6/2006-CE, 12/2012-CE - Anchor rings and Load Spreading Plates are used in the foundation of wind mill tower and cannot be considered to be part of Wind Operated Electricity Generators - benefit of exemption not available; however in r/o Tower doors since contrary view taken - 2013-TIOL-738-CESTAT-MUM, matter referred to Larger Bench: CESTAT

Inasmuch as -

++ In the case of Rakhoh Enterprises the duty demand along with interest was upheld. However, penalty was set aside.

++ In the case of Gemini Instratech Pvt. Ltd. the issue was to be considered by a Larger Bench.

We reported this case as - 2014-TIOL-2110-CESTAT-MUM.

Perhaps because this was issued as a Miscellaneous order but the fact of the matter was that the appeal of Rakhoh Enterprises was finally decided, the Bench thought it prudent to set the matter straight.

And, therefore, the CESTAT has issued a Corrigendum recently which mentions -

++ In the above said matter, in Order No. M/1820/14/EB/C-II dated 13.08.2014/25/09/2014 issued on 08.10.2014, in annexure to the preamble appeal No. E/88906/13-Mum may be deleted, for which separate Order is issued i.e. A/791/14/EB/C-II dated 13.08.2014 issued on 19.12.2014.

++ In short, Appeal Nos. E/1813/10-Mum & E/407/09-Mum both in respect of Gemini Instratech Pvt. Ltd. are referred to Larger Bench vide Order No. M/1820/14/EB/C-II dated 13.08.2014/25/09/2014 and Appeal No. E/88906/13-Mum of M/s. Rakhoh Enterprises, is decided vide Order No. A/791/14/EB/C-II dated 13.08.2014 issued on 19.12.2014.

In passing: Hope this solves the impasse.

(See 2015-TIOL-137-CESTAT-MUM)