Case Law Details
Souvenior Ceramics Vs Commissioner of Central Excise (CESTAT Chandigarh)
Introduction: In the case of M/s Souvenir Ceramics, a manufacturing company specializing in castable refractory goods, we delve into a complex scenario where they filed a refund claim for Rs.1,45,742 against Central Excise duty payments made in error. Their argument hinges on two key aspects: first, that their supplies were against International Competitive Bidding and should thus be exempt under Notification No.06/2006-CE dated 01.03.2006; second, that the exemption under Notification No.21/2002 applies as the goods were supplied to power projects.
The Disputed Claim: The crux of this case is M/s Souvenir Ceramics’ assertion that the Central Excise duty payments were made mistakenly and thus, they deserve a refund.
Project Capacity Dispute: The central point of contention was the power project’s capacity. The authorities argued that the exemption only applied to projects with a capacity of 1000 MW or more, while the project in question had two units of 500 MW each.
Competing Certifications: To prove their case, M/s Souvenir Ceramics produced a certification from a competing authority in the Ministry of Power, Government of India, dated 16.12.2009. This certification stated that the project indeed had a capacity of 1000 MW, composed of two 500 MW turbines.
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