Appeal Allowed: Manufacturer Wins Exemption for Power Cables in Wind Mill Projects

The Tribunal allowed the appeal, overturning the Commissioner (A)'s decision and ruling in favor of the appellant, a manufacturer of flexible cables and connectors. The Tribunal determined that the power cables supplied for wind mill projects qualified for exemption under Notification No. 6/2002-C.E. as they were control cables integral to Wind Operated Electricity Generators. The Tribunal emphasized that the control cables were distinct from power cables, as per CBEC's clarification and Ministry of New and Renewable Energy's statement. The appellant successfully demonstrated entitlement to the exemption, leading to the setting aside of the impugned order and granting of consequential relief.

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Issues:
Appeal against denial of exemption under Notification No. 6/2002-C.E. for power cables.

Analysis:
The appellant, a manufacturer of flexible cables and connectors, availed exemption under Notification No. 6/2002-C.E. for power cables supplied to wind mill projects. The Revenue contended that the appellant was not entitled to the exemption, leading to a Show Cause Notice for recovery of duty, interest, and penalty. The original adjudicating authority ruled in favor of the appellant, but the Commissioner (A) reversed the decision, prompting the appeal before the Tribunal.

Upon thorough examination, the Tribunal found that the power cables in question were control cables meant for control application in wind power plants. Referring to CBEC's clarification and Ministry of New and Renewable Energy's statement, the Tribunal concluded that control cables are integral parts of Wind Operated Electricity Generators, falling under the purview of the exemption notification. The Tribunal highlighted that previous Supreme Court judgments cited by the Revenue were inapplicable to the current scenario.

Based on the evidence and clarifications provided, the Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The decision was pronounced in open court on 24-8-2017, with the appellant successfully establishing entitlement to the benefit of Notification No. 6/2002-C.E. for the power cables supplied to wind mill projects.

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