By TIOL News Service

MUMBAI, FEB 14, 2018: CE duty of Rs. 2,77,378/- was demanded on electrically operated cranes and spares cleared by the appellants under claim for exemption in terms of Notification No. 03/2004-CE.

The demand was confirmed and equivalent penalty was imposed.

As the order was upheld by the Commissioner(A), an appeal was filed before the CESTAT.

During the hearing of the Stay application, it was submitted that they are eligible for the benefit of Notification in view of the certificate issued by the District Collector which describes the name of work as "System along with Communication, Pumping Stations 1 & 2 and Surge Tanks. "2x125 MW Power Plant at Barsingsar - RA -8 Water Carrier System from ICNP Canal RD 800.6 to Thermal Power Plant, Barsingsar - 33 KV Transmission System along with Communication, Pumping Stations 1 & 2 and Surge Tanks."

The Bench observed –

Accordingly the Bench ordered pre-deposit.

We reported this order as - 2010-TIOL-460-CESTAT-MUM.

The appeal was heard recently.

After hearing the submissions made by both sides, the President writing for the Bench observed –

"4. In the said Notification, the Explanation clarifies that:-

For the purpose of this notification, water supply plant includes a plant for desalination, demineralization or purification of water or for carrying out any similar process or processes intended to make the water fit for agricultural or industrial use.

5. From the above it appears that in the instant case the supply of cranes by the appellant was meant for setting up a water supply facility for thermal power plant and hence covered by the said Notification…"

The impugned order was set aside and the appeal was allowed.

In passing: Perhaps, this is not the last that we hear on this case…

(See 2018-TIOL-542-CESTAT-MUM)