Exemption for solar lantern components upheld where technical certification showed the inverter charger card performed the essential power function.

An inverter charger card used in a solar lantern was treated as eligible for exemption under Notification No. 5/99-C.E. because the notification covered solar voltaic modules, solar power generating systems and solar lanterns. Technical certification showed that the card performed the essential function of generating the required power for the lantern, so it was regarded as part of the exempt solar power generating system. On that basis, the exemption was allowed and the demand and penalty did not survive.

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Issues: Whether the inverter charger card used in a solar lantern was entitled to exemption as a solar power generating system under Notification No. 5/99-C.E. dated 28-2-99.

Analysis: The exemption notification covered solar voltaic modules, solar power generating systems and solar lanterns. The item manufactured by the assessee was an inverter charger card forming part of an SPV lantern, and technical certification supported the position that it performed the function of generating the required power for the lantern. On that basis, the item was treated as falling within the exempted solar power generating system.

Conclusion: The item was held eligible for exemption under the notification and the demand and penalty did not survive.

Ratio Decidendi: Where an item is technically certified to perform the essential function of an exempt solar power generating system, it may be treated as falling within the exemption notification.

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