Wind turbine towers qualify as generator components, supporting exemption under Notification No. 6/2006-C.E. and nullifying duty demand.

Tubular towers imported for use in wind operated electricity generators were treated as integral components of the generator and therefore eligible for exemption under Notification No. 6/2006-C.E. The analysis accepted that the tower supports the nacelle and rotor assembly, making it a part of the wind operated electricity generator rather than a separate item. A tariff classification distinction was found insufficient to defeat exemption where the notification covered the generator and its components and parts. On that basis, the denial of exemption and the associated differential duty demand were set aside in favour of the assessee.

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Issues: Whether tubular towers imported for use in wind operated electricity generators are eligible for exemption under Notification No. 6/2006-C.E.

Analysis: The dispute turned on whether the tower forms an integral part of a wind operated electricity generator. The decision followed the settled position that the tower supports the nacelle and rotor assembly and is therefore a component or part of the wind operated electricity generator. Reliance was placed on the Supreme Court ruling treating tower-related items as part of the generator and on the subsequent departmental circular clarifying that towers and allied components used in WOEG are eligible for exemption. The attempted distinction based on tariff classification did not affect eligibility where the notification granted exemption to wind operated electricity generators and their components and parts.

Conclusion: The imported tubular towers were held to be eligible for exemption under Notification No. 6/2006-C.E., and the denial of exemption and differential duty demand were set aside in favour of the assessee.

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