Solar Power Plant Components Exempt Under Notification No.15/2010-CE

The Tribunal found that the structures and parts of structures manufactured and cleared for the initial setting up of a solar power plant were considered "components" necessary for the solar power generation project. Therefore, they were eligible for exemption under Notification No.15/2010-CE as amended. The Tribunal set aside the impugned order, allowing the appeal with consequential relief.

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Issues Involved:
1. Whether the structures and parts of structures manufactured and cleared for initial setting up of a solar power plant are eligible for the benefit of Notification No.15/2010-CE, dated 27.02.2010 as amended by Notification No.26/2012-CE, dated 08.05.2012.

Issue-wise Detailed Analysis:

1. Eligibility for Exemption under Notification No.15/2010-CE:
The primary issue was whether the structures and parts of structures manufactured and cleared by the Appellant for the initial setting up of a solar power plant could be considered as "components" required for the solar power generation project, thus eligible for exemption under Notification No.15/2010-CE, dated 27.02.2010.

Arguments by Appellant:
The Appellant argued that the steel structures, which included reflector support beams, support posts, and various weldments, were essential for supporting solar panels and components for the initial setup of a solar power generation project. The Appellant provided certificates from the Ministry of New and Renewable Energy recommending the grant of the said exemption. The structures were described in the invoices and packing lists as parts of the solar plant, and according to the Appellant, these were used to mount the reflectors and receivers, which are crucial components of the solar power generation system.

Arguments by Revenue:
The Revenue contended that the steel structures classified under Chapter 73 of Central Excise Tariff Act, 1985, could not be considered "components" and thus were not eligible for the exemption. The Adjudicating authority, referencing a circular issued by the Board dated 06.08.2012, argued that the steel structures used for civil work, such as constructing buildings and storage tanks, were specifically excluded from the exemption.

Tribunal's Findings:
The Tribunal examined the Notification No.15/2010-CE and its amendment, which exempted all items of machinery and components required for the initial setup of a solar power generation project. The Tribunal noted that the items in dispute were used as support structures holding the reflectors, an essential part of the solar power generation system. The Tribunal referred to technical literature and manuals from the Ministry of New and Renewable Energy that described these support structures as key components of the solar power generation system.

The Tribunal also considered various judicial precedents and definitions of "components" and "parts" to conclude that the support structures in question were indeed "components" necessary for the solar power generation project. The Tribunal found no evidence to support the Revenue's claim that these items were used for civil construction work.

Conclusion:
The Tribunal concluded that the structures and parts of structures manufactured and cleared by the Appellant were indeed "components" required for the initial setting up of a solar power generation project. Therefore, they were eligible for the benefit of the exemption under Notification No.15/2010-CE as amended. The impugned order was set aside, and the appeal was allowed with consequential relief as per law.

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