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of <h1>Tribunal classifies tower sections for Wind Operated Electricity Generators under Customs Tariff Act</h1> <h3>M/s VESTAS WIND TECHNOLOGY INDIA PVT LTD Versus COMMISSIONER OF CUSTOMS</h3> M/s VESTAS WIND TECHNOLOGY INDIA PVT LTD Versus COMMISSIONER OF CUSTOMS - 2015 (327) E.L.T. 195 (Tri. - Ahmd.) Issues: Classification of 'tower sections' for Wind Operated Electricity Generator (WOEG) under Customs Tariff Heading 7308 or 8503.Analysis:1. Classification Issue: The appeal pertains to the classification of 'tower sections' imported for WOEG under Customs Tariff Heading 7308 or 8503. The appellant argued that the towers imported are specifically designed for WOEG, housing cables for electricity transmission and facilitating windmill direction adjustment. Reference was made to Section Note 1(f) of Section XV of the Customs Act, asserting that parts exclusively for Section XVI articles are not classified under Chapter 73. The appellant also cited CBEC Circular No. 924/2//97-Cus (TRU) and a judgment supporting the view that WOEG towers are essential components.2. Contentions: The appellant's representatives contended that Central Excise exemption Notification No. 6/2006-C.E. considers towers as essential components of WOEG, thus advocating for similar treatment in Customs classification. On the other hand, the Revenue representative argued that towers fall under CTH 7308, as specifically mentioned, and should be classified accordingly. The original authority's decision to classify the towers under CTH 73082019 was supported by the Revenue.3. Judicial Analysis: The Tribunal analyzed the functions and design of the towers, emphasizing their exclusive use for WOEG, including windmill elevation and wind direction control. Referring to Section Note 2 to Section XV, it was noted that parts specifically designed for a particular machinery type should be classified where the main machine is categorized. The Tribunal highlighted the CBEC Circular's affirmation that WOEG towers are essential components. Drawing parallel with Central Excise treatment, the Tribunal concluded that the towers are appropriately classifiable under Heading 8503, granting the appellant the associated benefits.4. Decision: Following thorough deliberation and considering the arguments presented, the Tribunal ruled in favor of the appellant, allowing the appeal and affirming the correct classification of the towers under Heading 8503 of the Customs Tariff Act. The judgment emphasized the specialized nature of the towers for WOEG and their classification as essential components, aligning with Central Excise considerations.
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