TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Carbon Pultruded Plates classification rejects raw carbon fibre treatment but grants rotor blade parts concessional BCD at 5%.</h1> Carbon Pultruded Plates are classified as articles of carbon fibre rather than raw carbon fibre; therefore they do not qualify under the exemption entry ... Classification of goods and applicability of exemption notification - Interpretation of 'Carbon Fibre' versus 'articles of carbon fibres' and scope of 'raw materials' and 'parts' - Doctrine that a part of a part is a part of the whole - Customs Authority for Advance Rulings (CAAR) - Section 28H(2) of the Customs Act, 1962 - Notification No. 50/2017-Customs dated 30.06.2017 and its amendment Notification No. 05/2025-Customs dated 01.02.2025 - HELD THAT:- In the present case, the subject goods are Carbon Pultruded Plates, that is made from carbon fibre. Carbon Pultruded Plates are articles of carbon fibre and the applicant itself classified the subject goods under heading 68151900 as other articles of carbon fibre whereas the notification benefit is exclusively available to Carbon Fibre, not to “articles of carbon fibre”. In trade parlance, “Carbon Fibre” refers to continuous filaments or tows, generally 5-10 microns in diameter, supplied as raw material. Pultruded Plates are significantly different -- they are resin- impregnated, cured, cut, and dimensionally stabilized articles. Carbon Pultruded Plates, though made from carbon fibre, have acquired a distinct identity and would fall outside the ambit of “Carbon Fibre” as such under the entry description at sr. no. 5 in the said exemption notification. It is evident that spar caps are integral part of a rotor blade and carbon pultruded plates are used in manufacturing of the spar cap therefore, it can be implied that the subject goods “carbon Pultruded Plates” are part of spar cap. Further, it is a settled principle of law that “a part of a part is a part of the whole” i.e., a sub-component of a component of a machine/apparatus is to be categorized as a component of the machine. In the instant case, the “Carbon Pultruded Plates” are sub-parts meant to be used in manufacturing of spar cap and accordingly shall qualify as parts of rotor blade. It can be observed that carbon pultruded plates are used as spar cap in rotor blade to provide greater efficiency, reduction in weight, better design and aerodynamic profile. The Plates also provide strength, rigidity, and durability to the working of Rotor Blade. Hence, it can be ruled that carbon pultruded plates are parts of rotor blade that are embedded in Rotor Blades in such a manner that these cannot be easily removed at any given instance significantly damaging the blade’s integrity which is not a feasible or safe process. Therefore, the Plates embedded in the Rotor blades become an inseparable part of the entire structure of WOEG. In view of the above, the carbon pultruded plates are not the raw carbon fibre but these plates are indispensable parts of the rotor blade and the Applicant is entitled to claim the benefit of concessional rate of BCD in terms of Sr. No. 405(4) of the exemption Notification. In view of the above discussions and findings, my answers in respect of the questions asked in the present application are as follows: “Carbon Pultruded Plates” which are classifiable under CTI 68151900 of the Customs Tariff Act, 1975 with 10% BCD. i. Not eligible under Sr. No. 405(5) of Notification 50/2017-Cus, since that covers only raw carbon fibre or balsa wood. ii. Eligible under Sr. No. 405(4) as “parts for rotor blade manufacture”. concessional BCD @5%. Issues: (i) Whether imported 'Carbon Pultruded Plates' are eligible for concessional Basic Customs Duty under Sr. No. 405(5) of Notification No. 50/2017-Customs (as amended by Notification No. 05/2025-Customs); (ii) Whether imported 'Carbon Pultruded Plates' qualify as 'parts for the manufacture of blades for rotor of wind operated electricity generators' and are eligible for concessional Basic Customs Duty under Sr. No. 405(4) of Notification No. 50/2017-Customs (as amended).Issue (i): Whether Carbon Pultruded Plates fall within Sr. No. 405(5) (raw carbon fibre or balsa wood) of Notification No. 50/2017-Customs as amended by Notification No. 05/2025-Customs.Analysis: The Authority examined the nature and manufacturing process of the plates (pultrusion resulting in resin-impregnated, cured articles comprising carbon fibre, polymerized resin and kaolin), classificatory heading CTH 68151900 and the amended text of Sr. No. 405(5) which post-amendment specifically lists 'Balsa Wood, Carbon Fibre for the wind operated electricity generator blades' rather than a generic category of raw materials. The Authority contrasted raw filamentary carbon fibre (trade meaning) with finished resin-impregnated pultruded plates which have acquired a distinct identity and are classifiable as 'other articles of carbon fibre' under heading 68151900.Conclusion: Not eligible under Sr. No. 405(5) of Notification No. 50/2017-Customs (as amended) for concessional BCD.Issue (ii): Whether Carbon Pultruded Plates qualify as 'parts for the manufacture or the maintenance of blades for rotor of wind operated electricity generators' under Sr. No. 405(4) of Notification No. 50/2017-Customs (as amended) and thereby attract concessional BCD @5%.Analysis: The Authority analysed the functional role of the plates as spar caps (primary load-bearing, structural backbone) embedded in rotor blades, the limited preparatory operations performed (cutting, chamfering, stacking, infusion) and relevant precedents and definitions distinguishing parts from raw materials. The Authority applied principles that machine-specific components and sub-components intended to perform an essential function in the finished machine qualify as parts, and accepted that the plates are specifically designed and integral to blade performance and inseparable once incorporated.Conclusion: Eligible under Sr. No. 405(4) of Notification No. 50/2017-Customs (as amended) as parts for rotor blade manufacture; concessional BCD @5% applies.Final Conclusion: The advance ruling answers the questions posed by the applicant by denying applicability of Sr. No. 405(5) to Carbon Pultruded Plates while allowing applicability of Sr. No. 405(4) so that the plates, though classifiable under CTH 68151900, attract concessional Basic Customs Duty @5% as parts for rotor blade manufacture.Ratio Decidendi: Where an imported article has acquired a distinct identity as an article of carbon fibre but is specifically designed, integral and indispensable as a machine-specific component used in manufacture of rotor blades, it does not fall within a narrowed exemption confined to raw carbon fibre but qualifies as a 'part' under the exemption entry for parts, attracting the concessional duty specified for parts in the notification.
TaxTMI 
TaxTMI 
