Exemption for windmill components upheld where doors formed part of the generator tower and notification covered parts and components.

Windmill doors manufactured for use with wind operated electricity generators were treated as eligible for exemption under Notification No. 3/2001-CE and Notification No. 6/2002-CE because the exemption covered not only the generators themselves but also their components and parts. The Tribunal distinguished the Supreme Court ruling relied on by the Revenue, noting that it concerned wires and cables under differently worded notification entries and was therefore not applicable. It also relied on the Revenue's acceptance of exemption for windmill towers, observing that doors forming part of the tower used with the generator could not be treated differently. The denial of exemption was set aside.

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Issues: Whether windmill doors manufactured for use with wind operated electricity generators were entitled to exemption under Notification No. 3/2001-CE dated 01/03/2001 and Notification No. 6/2002-CE dated 01/03/2002 as components or parts of such generators.

Analysis: The exemption entries covered wind operated electricity generators and their components and parts. The earlier Supreme Court decision relied upon by the Revenue concerned wires and cables under a differently worded notification and was held inapplicable because the notifications in question expressly extended to components and parts. The Tribunal also noted that the Revenue had accepted exemption for windmill towers, and the doors, being part of the tower used in the wind operated electricity generator, could not be treated differently.

Conclusion: The windmill doors were held eligible for exemption under the notifications and the denial of benefit was set aside.

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