The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) held that the telecom power supply, system assembly, power controllers, solar inverters not eligible for central excise duty exemption.
During the course of audit of the records of the appellant, it was noticed that they have wrongly availed exemption under Notification No.12/2012-CE dated 17.03.2012 on Solar Inverters falling under CSH 85044010, Combiner Box / Array Guard falling under CSH 85049090 and PV Logs falling under CSH 85371000 declaring the same as Solar Power Generating System and cleared the same without payment of duty (against Sl.No.332 List 8, No.10 of Notification No.12/2012- CE).
The advocate for the appellant submitted that the appellant had voluntarily deposited the amount of duty under protest in August 2014 and that the showcause notice is barred by limitation as there is no wilful suppression of facts with intent to evade payment of duty and they have availed the benefit under bona fide belief that they are eligible for exemption under Notification No.12/2012-CE dated 17.03.2012 and not required to pay excise duty on the clearances effected by them.
The counsel for the Revenue submitted that the issue of admissibility of Notification No.12/2012-CE dt. 17.03.2012 to the parts manufactured by the appellant viz. Solar Inverters, Combiner Box / Array Guard and PV Logs is squarely covered by the judgment of the Principal Bench of this Tribunal in the case of Raydean Industries Vs. Commissioner of CGST, Jaipur.
A Two-Member Bench comprising DM Misra, Judicial Member and R Bhagya Devi, Technical Member held that “The Revenue has referred to the judgment of the Principal Bench in Raydean Industries’ case wherein parts of Solar Power Generating System manufactured and cleared held to be not eligible to the benefit of the said Notification No.12/2012-CE dated 17.03.2012. Thus, the parts manufactured by the appellant are not eligible to the benefit of exemption under Notification No.12/2012-CE dated 17.03.2012”.
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