General-purpose power cables were not treated as wind mill parts, so the exemption claim failed.

General-purpose power cables used to transmit electricity generated by wind mills were not treated as parts of the wind mills themselves for exemption purposes. The record did not show that the cables formed an integral component of the wind mill system, such as inside cabling of a wind turbine controller. Note 4 to Section XVI of the Central Excise Tariff was held inapplicable because it concerns complete machines made up of components and does not extend to interconnecting electric cables. The exemption claim under Notification No. 205/88-C.E. therefore failed.

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Issues: Whether power cables manufactured for use in wind mills were parts of wind mills so as to qualify for exemption under Notification No. 205/88-C.E. dated 25-5-1988.

Analysis: The cables were found to be general-purpose power cables used for transmitting electricity generated by wind mills, not components forming part of the wind mill itself. The record did not establish that they were used as inside cabling of a wind turbine controller or as an integral element of the wind mill system. Note 4 to Section XVI of the Central Excise Tariff was held inapplicable because it governs classification of complete machines made up of individual components and does not bring interconnecting electric cables within the machine itself.

Conclusion: The power cables were not eligible to be treated as parts of wind mills, and the exemption claim failed.

Final Conclusion: The exemption was denied and the appeal was dismissed, leaving the classification and duty demand undisturbed.

Ratio Decidendi: General-purpose cables used to transmit power generated by a machine are not, by that use alone, parts of the machine for exemption or classification purposes unless their functional integration as an essential component is proved.

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