Classification of wind mill tower flanges as parts of wind operated electricity generators supports exemption eligibility.

Imported flanges that are design-specific and meant only for erection of wind mill towers are classifiable under Heading 8503 as parts of wind operated electricity generators, because classification turns on the specific function and intended use of the goods. The Tribunal treated wind mill towers and tower sections as parts of such generators and held that the flanges, being integral to the tower assembly, fall within the exemption entry covering wind operated electricity generators, their components and parts. The claimed exemption was therefore available.

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Issues: Whether imported flanges used in wind mill towers are classifiable under Heading 8503 as parts of wind operated electricity generators and whether they are entitled to exemption under Notification No. 12/2012-CE (Sl.No. 332) dated 17.03.2012.

Analysis: The imported flanges were found to be design-specific items meant only for erection of wind mill towers and not general-purpose flanges falling under Chapter 73. The Tribunal followed prior decisions holding wind mill towers and tower sections to be parts of wind operated electricity generators, and relied on the principle that classification depends on the specific function and intended use of the goods. It was also noticed that the relevant notification covers wind operated electricity generators, their components and parts, and that the flanges, being integral to the tower assembly used for such generators, fall within that description.

Conclusion: The flanges are classifiable under Heading 8503 as parts of wind operated electricity generators and are eligible for the claimed exemption.

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