2016 (3) TMI 296 - AT - Customs

Tribunal Classifies Epoxy Stator Coils as Generator Parts, Supports State PSU in Landmark Decision

The Tribunal determined that the imported goods, epoxy stator coils, were specifically designed for power generators, supporting classification under 8503 ... Classification - Epoxy, parts of Hydro Electric Generator - Goods imported for use at Sharavathy Hydro electric Power Generating Station project- Held that: the Bills of Entry, literature, catalogue and schematic/sketch diagrams enclosed with the appeal paper book, described the goods as epoxy insulated single turn half coils wave stator winding and its spares and accessories. Also, in the copy of the original catalogue of both Hitachi, Japan and General Electric Canada INC, the goods have been described as CGE advanced insulation system. Therefore, when the principal supplier has clearly certified that these spare epoxy coils and accessories are specially made for the generators at Sharavathy Power Generating station and can be used only for the above generating units and not elsewhere, the goods imported under the Bills of Entries are epoxy stator coils solely designed for power generators for Hydro Power Project and rightly classifiable under 8503 and not under 8544. - Decided in favour of appellant with consequential relief Issues:Classification of imported goods under Bills of Entry - 8503 as parts of generators or 8544 as insulated wire/cables.Analysis:The judgment revolves around the classification of imported goods under Bills of Entry either under 8503 as parts of generators or 8544 as insulated wire/cables. The appellant, a State PSU, imported parts for a Hydro Electric Project and claimed classification under 8503. The Commissioner (Appeals) rejected the claim, leading to the present appeal. The appellant argued that the goods were solely designed for generators and should be classified under 8503, supported by catalogues, diagrams, and supplier certification. The respondent opposed, citing the Bills of Entry and relevant classification provisions.Upon analysis, the Tribunal found that the goods imported were epoxy stator coils specifically designed for power generators, as evidenced by supplier certification and supporting documents. Referring to Section Note 2 (b), the Tribunal concluded that the goods, being particularly meant for generators, fall under 8503. Citing precedents like Windel Submersible Pvt. Ltd. Vs. UOI and Sharp Industries Vs. CCE, the Tribunal upheld the appellant's classification argument, setting aside the impugned order and allowing the appeal with consequential relief.The Tribunal highlighted the prolonged litigation process spanning 15 years, reaching multiple appellate levels and even the Supreme Court previously. Considering the appellant's status as a State PSU, the Tribunal urged the authorities to promptly settle the legitimate refund claim following the judgment. The detailed analysis focused on the specific classification provisions, supplier certification, and precedents to support the conclusion that the imported goods were rightly classified under 8503 as parts of generators, emphasizing the specialized nature of the goods and their intended use.