Notification No. 12/2012-Central Excise

[VIjay Lagad]

We are supplying goods such as LED Lights/ Fluorescent Lights to the Wind Electric Generator Manufacturer for their Tower and Nacelle under previous Notification no 6/2006 and current Notification no. 12/2012 ( Sr.No.327 & 332, List 8 , Point no. 13 & 21, ) was a part of Wind Mill.

 We are not taking Cenvat Credit on Input and also not charging Excise Duty while supplying to the customer under these notification. Our Customer has issued us End User Certificates for the goods under exemptions.

Now We have received notice from Excise Department that we shall take the Cenvat Credit on Inputs Goods and We should Charge E.D. to the Wind Electric Generator Manufacturer as these components are not the part of Wind Electric Generator.

Wind Mill will be manufactured by using so many components. These components can be used for another products. For example an Aluminum Door used for Wind Mill Tower could be used for the Office Cabin also as door. But when it fits to the Wind Mill Tower, a Tower is a part of Wind Mill Nacelle ( where actual generator is fitted) it becomes a part of windmill. This door is for Safety and entrance in the wind mill. Similarly our Lights are fitted in the Tower, Nacelle for human safety during maintenance and operation. Without lighting not a single wind mill will be installed. So it becomes a part of Wind mill.

What shall be done in this case? Whether we are right or Excise Department is right?

Waiting for clarification.

 As per the Notification no. 12/2012 Sr.No.327 & 332, List 8 , Point no. 13 & 21, we had supplied the goods to the WEG manufacturer (our Customer).

AI Summary

Excise Department Challenges Company Over Duty on LED and Fluorescent Lights Used in Wind Generators Under Notification 12/2012. A company supplying LED and fluorescent lights for wind electric generators under Notification No. 12/2012 is facing an issue with the Excise Department. The department argues that these lights, not being exclusive components of the windmill, should incur excise duty and Cenvat credit should be taken on inputs. The company contends that these lights are integral to the windmill's operation and safety. Replies from experts indicate that only components specifically manufactured for wind-operated electricity generators are exempt from excise duty. The consensus suggests the Excise Department's stance is correct, as the lights are general-purpose components.