KEC International Limited Vs Commissioner of Central Excise Central Goods & Service Tax (Appeals) (CESTAT Delhi)
The CESTAT, New Delhi in M/s. KEC International Limited v. Commissioner of Central Excise and Central Goods & Service Tax (Appeals) [Excise Appeal No. 52907 of 2019 dated May 10, 2022] set aside the order passed by the Revenue Department denying benefit of exemption to the assessee. Held that, galvanised solar structures for mounting or holding reflectors or mirrors are to be considered as “components” of reflectors or mirrors as they are required for the initial setting up of solar power generation projects and are eligible for the benefit of exemption as granted on the basis of a certificate issued by competent Revenue Authority.
Facts:
M/s. KEC International Limited (“the Appellant”) is in the manufacturer of transmission towers and erection and laying of power transmission lines on an EPC basis.
An Audit was conducted by the Revenue Department (“the Respondent”) wherein, it was noticed that the clearance of galvanised solar structures (module mounting structures and hot dip galvanised structures (“the Impugned Goods”) falling under Central Excise Tariff Heading 7308 2019 was being done by availing the benefit of the Notification No. 15/2010-Central Excise dated February 27, 2010 (“Exemption Notification”).
Subsequently, an order was passed by the Respondent, denying the benefit of exemption to the Appellant, which was further upheld by the Commissioner (Appeals) in Order-in-Appeal No. 236(CRM)/CE/JPR/2019 dated September 29, 2019 (“the OIA”) holding that the mounting structures, supplied by the Appellant, cannot be considered as ‘component’ of a solar power generation project or facility.
Being aggrieved, this appeal has been filed.
The Appellant contended that benefit of exemption was availed after being duly permitted by the competent authority of the Central Excise that allowed clearance only after they were satisfied that the Appellant was justified in availing the Exemption Notification.
The Appellant contended that in terms of notification, the liability, if any, would be on the promoter and not on the manufacturer and in case of non-compliance of condition under the Exemption Notification, the project developer shall be liable to pay the duty which was not paid on account of exemption at the time of clearance.
Issue:
Whether the Appellant is entitled to the benefit of the Exemption Notification for the galvanised solar structure cleared to solar power generating companies?
Held:
The Hon’ble CESTAT, New Delhi in Excise Appeal No. 52907 OF 2019 dated May 10, 2022 held as under:
