Exempted Supplies made to ICB-based Petroleum Project: CESTAT Quashes ₹87 Lakh Excise Demand [Read Order]

CESTAT quashed an ₹87 lakh excise-duty demand on supplies made to an ICB-based petroleum project, ruling that the goods were fully exempt under applicable notifications. Examining contractual documents and project approvals, the bench concluded that supplies to such petroleum projects fall within statutory exemption and thus attract no duty. It faulted the department for ignoring exemption notifications and reiterated that exemptions must be given full effect once eligibility is proven. The order reaffirms the importance of correctly applying exemption provisions to project-specific supplies.