Classification of wind turbine towers supported complete waiver of pre-deposit at the stay stage.

Imported tubular towers claimed as components used solely with wind operated electricity generators were considered for classification under heading 8503 as parts of machinery of heading 8502, rather than heading 7308 as towers. The order relied on the Board's clarification that tower parts are essential components of wind operated electricity generators and that, without such towers, the imported parts cannot be treated as wind operated electricity generators in unassembled or disassembled condition. Earlier Tribunal view in similar proceedings was treated as supporting the importers at the stay stage, while Revenue's contrary decisions were distinguished as matters for final hearing. The appellants were held to have made out a strong prima facie case for complete waiver of pre-deposit and stay of recovery.

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Issues: Whether the appellants made out a prima facie case for complete waiver of pre-deposit and stay of recovery in respect of the duty, interest and penalty demanded on the imported tubular towers.

Analysis: The imported towers were claimed as components used solely with wind operated electricity generators. The competing classifications were heading 8503 as parts of machinery of heading 8502 and heading 7308 as towers. The order noted the Board's clarification that tower parts constitute essential components of wind operated electricity generators and that, without such towers, the imported parts cannot be treated as wind operated electricity generators in unassembled or disassembled condition. The earlier Tribunal view in similar proceedings was treated as supporting the appellants' case at the stay stage, and the contrary decisions cited by Revenue were held to be distinguishable for final hearing.

Conclusion: The appellants established a strong prima facie case for total waiver of pre-deposit and stay of recovery.

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