Windmill Parts Eligible for Exemption under Notification No. 6/2006

The Larger Bench affirmed that windmill doors, anchor rings, and load spreading plates are eligible for exemption under Notification No. 6/2006 as parts of windmills and towers designed for wind-operated electricity generators. The impugned orders were set aside, and the appeals of the companies involved were allowed.

---

---

Issues: Interpretation of Notification No. 6/2006 dated 1.3.2006 for exemption from Central Excise duty on wind mill doors, anchor rings, and load spreading plates.

Analysis:

1. Interpretation of Notification No. 6/2006 for Wind Mill Doors:
The division Bench of the Tribunal referred the issue of entitlement to claim exemption under Notification No. 6/2006 for wind mill doors. The Larger Bench's decision, dated 21.6.2016, affirmed that windmill doors are eligible for exemption under the said notification as parts of windmills. This decision was in response to the case of Gemini Instratech Pvt. Ltd.

2. Interpretation of Notification No. 6/2006 for Anchor Rings and Load Spreading Plates:
Initially, the order dated 25.9.2014 had denied the benefit of Notification No. 6/2006 to anchor rings and load spreading plates in the case of M/s Rakhoh Enterprises. However, the issue was taken up in a Writ before the Bombay High Court, which referred it to the Larger Bench of the Tribunal. The Larger Bench, in its decision on 21.6.2016, clarified that anchor rings and load spreading plates, being parts of the tower designed for wind-operated electricity generators, are also eligible for exemption under Notification No. 6/2006.

3. Outcome of the Decision:
Following the Larger Bench's decision, the impugned orders were set aside, and the appeals of M/s Gemini Instratech Pvt. Ltd. and M/s Rakhoh Enterprises were allowed. This decision was pronounced in court on 06.12.2016.

This judgment clarifies the scope of exemption under Notification No. 6/2006 for wind mill doors, anchor rings, and load spreading plates, providing a definitive interpretation that these components are eligible for exemption as parts of windmills and towers designed for wind-operated electricity generators.

---