Wind mill-specific components treated as parts of wind mills, securing exemption over general structural classification.

Goods specially designed and manufactured for wind mills, including nacelle bodies, towers, lattice structures and masts, may be treated as wind mill parts rather than general structurals where the items are made to specific wind mill designs and specifications and the wind mill cannot be erected or function without them. On that basis, such components fall within the exemption under Notification No. 205/88-C.E. and are not classifiable merely as Heading 73.08 structurals. The Tribunal relied on the functional necessity of the components and supporting record, including photographs, to distinguish wind mill-specific parts from general-purpose structural goods.

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Issues: Whether nacelle body, towers, lattice structures and masts manufactured for wind mills were classifiable as general structurals under Heading 73.08 or were entitled to exemption as parts of wind mills under Notification No. 205/88-C.E. dated 25-5-88.

Analysis: The dispute turned on the functional character of the goods and whether they were specially designed for wind mills. The Tribunal accepted that the items were manufactured according to specific wind mill designs and specifications, and that the wind mill could not be erected or function without these supporting components. Reliance was placed on the earlier Tribunal view that a wind operated generator is not complete without the tower and related components, and the photographs on record also supported the finding that the disputed items were not general-purpose structurals but wind mill-specific parts.

Conclusion: The disputed items were held to be parts of wind mills and eligible for exemption under Notification No. 205/88-C.E.; the Revenue's appeal was rejected.

Ratio Decidendi: Goods specially designed and manufactured for a wind mill, without which the wind mill cannot be erected or function, are to be treated as parts of the wind mill and not as mere general structurals for the purpose of exemption.

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