2023 (7) TMI 428

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....allets' or 'Tower Internals' were claimed by appellant to be parts of Wind Mills / Wind Operated Electricity Generators (WOEG). The department was of the view that such goods are general purpose equipment and are not specific parts of the WOEG. The audit team objected to the availing of exemption. Subsequently, show cause notice was issued to the appellant proposing to demand duty on the goods for the period July 2014 to March 2016 along with interest and also for imposing penalties. After due process of law, the original authority held that the above goods are not eligible for exemption and confirmed demand along with interest and imposed penalties. Aggrieved by such order, the appellant is now before the Tribunal. 2. Ld. Counsel Sri Tarun Jain Advocate along with Harsh Shukla Advocate appeared and argued for the appellant. It is submitted that the goods manufactured by the appellants are (a) Aluminium Platforms and (b) Steel/Aluminium Structures. Along with these manufactured items, the appellant is also supplying bought out items namely (c) Ladders (d) cables (e) LEDs (f) Fasteners (g) Rubber Profiles and (h) Locks and other accessories as mentioned in the Bill of Materials. ....

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....pecific use were furnished to the department. Furthermore, the appellant vide their letter dated 18.07.2014 had made detailed submission to the department wherein the technical write up along with photographs and explanation of the goods supplied by them were fully made known to the department. The Ld. Counsel referred to the image of the Tower Internal for Wind Turbine Generator which is as under : 5. The major materials of assembly kit are Aluminium Platforms, Ladders, Electrical items like LED lights, Steel parts, Safety items, Elevator Fences etc. The above image would reveal that the goods supplied by the appellant are integral part of manufacturing of the WOEG and thus falls within the scope of exemption notification. This aspect is in addition to the fact that the claim of exemption made by the appellant is based upon a declaration of the manufacturer of WOEG that the goods manufactured by the appellant are exclusively used for the manufacture of WOEG. This fact is also supported by the certificate of the Chartered Engineer. 6. It is submitted by the Ld. Counsel that in the appellant's own case, the issue stands settled The appeal filed before Commissioner (Appeals) wa....

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.... appellant is that the notification in question provides exemption in respect of wind operated electricity generators, its components and parts thereof. The tower which is part of wind operated electricity generators and the Revenue is not denying the benefit of notification in respect of tower, hence the doors which is part of tower cannot be denied the benefit of above mentioned notifications. The applicant relied upon the order dated 28-2-2005 passed by the Commissioner of Central Excise, Raipur, whereby the Commissioner has allowed the benefit of Notification No. 6/2002-C.E., dated 1-3-2002, which is under consideration in the present case also, in respect of towers. The Commissioner of Central Excise held that the towers support the propellers/rotors which are essential components of the wind operated electricity generators and the towers manufactured by the assessee are part of the wind operated electricity generators. Hence, entitled for the exemption provided under Notification No. 6/2002-C.E., dated 1-3-2002. The appellants also relied upon another decision passed by the Commissioner of Central Excise (Appeals), Raipur, dated 10-12-2003 whereby the benefit of Notification ....

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....er. This, according to us, would be sufficient to make it part of the electricity generator. We further find that this was so held by the Commissioner of Central Excise and Customs, Raipur in Order-in-Original dated 28-2-2005 as well as by the Commissioner (Appeals), Raipur, vide his orders dated 10-2-2003. The said orders were accepted by the Revenue as it is recorded by the CESTAT that the Revenue could not produce any evidence to show that those orders were challenged by it. Further, since the tower is held as part of the generator, door thereof has to be necessarily a part of the generator. We, therefore, are of the opinion that there is no case of interference made out by the Department." 15. The Larger Bench in the case of Rakhoh Enterprises (supra) had held that anchor rings consists of large rings with long bolts attached to it etc. as parts of tower specially designed for WOEG and are eligible for exemption under Notification NO.6/2006 dated 1.3.2006. Relevant para reads as under : "5.3 We have gone through the rival submissions. We find that the anchor rings consists of large rings with long bolts attached to this at the circumvent. The load spreading plates i....