Exemption for windmill rotor blade parts supported prima facie; pre-deposit waived and recovery stayed pending appeal.

Springs supplied for rotor blades used in wind mill generators were treated as prima facie eligible for exemption under Notification No. 6/2006 dated 01.03.2006, since the notification extends to wind operated electrical generators, systems and parts thereof. The demand proceeded on the view that rotor blades were outside the notification, but the Tribunal found, on the record, that the springs were meant for rotor blades used in wind mill generators and that parts of rotor blades could prima facie fall within the notification. On that basis, waiver of pre-deposit was granted and recovery of the demanded duty, interest and penalty was stayed pending disposal of the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery of the demanded duty, interest and penalty, and whether the goods supplied as springs for rotor blades used in wind mill generators were prima facie covered by Notification No. 6/2006 dated 01.03.2006.

Analysis: The demand had been raised on the premise that the appellant was manufacturing springs for rotor blades and that rotor blades were outside the scope of the notification, which extended benefit to wind operated electrical generators, systems and parts thereof. On the record, there was no dispute that the springs manufactured and supplied were meant for rotor blades used in wind mill generators. The Tribunal found, prima facie, that parts of rotor blades could be treated as eligible for the benefit of the notification.

Outcome: Waiver of pre-deposit was granted and recovery of the demanded amounts was stayed till disposal of the appeal.

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