2008 (6) TMI 201

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....ity in the impugned order held that the towers constituted essential components of windmills and hence classifiable under SH 8412.90 of the CETA Schedule attracting the benefit of the above Notification. According to the Revenue, the towers are iron or steel structures appropriately classifiable under SH 7308.20. 2. The learned SDR reiterates the grounds of this appeal with special focus on Ground No.1, which reads "the goods cleared from the factory were only towers and towers are specifically covered under Chapter Heading 7308.20". The learned counsel for the respondents relies on the following two decisions of the Tribunal in support of the order of the Commissioner (Appeals) (i) Commissioner v. Techno Fab Manufacturing Ltd. - 2003....

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....t appears from the facts of this case that the iron/steel towers in question were manufactured in the respondent's factory and cleared in SKD/CKD condition (without payment of duty) to the buyer's sites, where the towers were erected and the remaining parts of windmill mounted thereon. These remaining parts of the windmill were not manufactured or supplied by the respondents. In other words, the goods cleared from the respondent's factory were only towers, which are treated by them as parts of windmills and by the Revenue as mere towers classifiable under SH 7308.20. It appears from the description of goods given at Sl. No.18 of the Notification that exemption from payment of duty was extended to those parts which were manufactured and capt....

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....at the towers manufactured and cleared from the respondent's factory were used by their buyers as parts of windmills. But this is not enough. For claiming exemption from payment of duty on the towers, these items should have been cleared as parts of windmills. In other words, the towers should have been involved in the manufacture and clearance of windmills in SKD/CKD condition or otherwise. The above Notification was, purportedly, to benefit those manufacturers who manufactured non-conventional energy producing devices as complete machines and cleared the same in SKD/CKD condition or otherwise. This position is abundantly clear from S. Nos.1 to 17 of the Table annexed to the Notification. Sl. No.18 was so worded as to enable such manufactu....