2024 (11) TMI 1179

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....Notification No. 12/2013-CE dated 17.03.2012 at Sr. No. 332 read with List 8 that exempts payment of duty on electric generator including its 'parts' and 'components', which Appellant claims in the affirmative while Respondent-Department assorts on non-application of exemption and confirms demand of Rs.3,29,33,313/- with 10% penalty on the confirmed duty amount for the period from November, 2015 to June, 2017. 2. Undisputed fact in this case is that Appellant is a manufacturer of industrial and marine 'paints' as well as powder coated materials and it was supplying those also to manufacturers of wind mills by availing exemption, as noted above, ever since Notification No. 12/2012-CE came into existence and such claiming and availing exem....

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....aints' manufacturing. 3.1 Learned Departmental Representative Mr. C.S. Vinod, with reference to a finding given by the Authority for Advance Ruling for GST Maharashtra, that was affirmed by Hon'ble Bombay High Court as reported in 2023 (72) GSTL 82 (Bom.), passed in Appellant's own case had argued that the impugned product namely marine paint can't be considered as part of the ship. Contradicting the same learned Counsel for Appellant argued that paints were used as coating for protection and not colouring or painting and in similar circumstances in respect of 'door' used as safety device for high voltage equipment fitted in said wind mill tower was held to be a part of wind mill by Hon'ble Supreme Court of India in the case of C....

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....r its protection & safety and as an auxiliary requirement to retain its life and beauty. Disallowing exemption to 'paints', which are applied to exempted goods would be like removal of skin from a human being so as to treat him as skinless individual that can only be possible when he/she is kept in a hospital. For example, if garments are exempted from payment of Excise duty, then it would not be applied to raw fabric with colour applied to it or else only plain and white fabric alone would get the desired benefit of exemption. We are, therefore, of the view that paint is a "part and parcel" or an "essential feature" of an element or to say an essential or integral feature of a component as a whole. In a manufacturing industry also, powder ....