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

WEG component exemption applies only to components specifically manufactured for the generator; general purpose lights are excluded.
Exemption for WEG components in List 8 applies only to components and parts specifically manufactured or designed for the wind electric generator or its components. General purpose items such as standard LED/fluorescent lights that are not bespoke to the WEG are not covered by the exemption. End user certificates issued by the purchaser do not establish entitlement to the exemption; where goods are general purpose, the department's position to deny exemption and require Cenvat and duty appears correct.