TaxTMI 
TaxTMI 
2026 (1) TMI 1464
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....Customs dated June 30, 2017 (as amended by Notification No. 5/2025 - Customs dated February 1, 2025); and/ or B. Sr. No. 405(4) of Notification No. 50/2017-Customs dated June 30, 2017 (as amended by Notification No. 5/2025 - Customs dated February 1, 2025. 2. The applicant is a vertically integrated Wind Operated Electricity Generators ("WOEG") manufacturer. It also undertakes installation and O&M of all WOEG sales. The operations include design development and manufacturing of all major components, including Rotor Blades, Tubular Towers, Generators, Control Equipment, Gears and Nacelles. Apart from manufacturing, it offers a full gamut of wind project planning and execution services, including wind resource assessment, infrastructure and power evacuation, technical planning and execution of wind power projects. It also offers O&M services in India and overseas countries 2.1 In the context of WOEG, a Rotor Blade is a key component of the wind turbine's rotor system. It's responsible for capturing wind energy and converting it into rotational motion. The blades' shape, usually airfoil-like, is crucial for efficiently converting wind's kinetic energy into mechanical en....
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....rbine controllers, and (e ) Parts of the goods specified at (a) to (d)" 5% (3) Blades for rotor of wind operated electricity generators, for the manufacture or the maintenance of wind operated electricity generators 5% (4) Parts for the manufacture or the maintenance of blades for rotor of wind operated electricity generators 5% (5) Raw materials for the manufacture of, (a) blades for rotor of wind operated electricity generators, or (b) parts, sub-parts of such blades" 5% ... ... ... ... b. With effect from February 2, 2025: Post Union Budget, 2025, the Government merely modified the exemption Notification by issuing Notification No. 05/2025- Customs dated February 1, 2025. The following goods are now allowed at a concessional rate of BCD of 5%: Table Sr. No. CTH/ Sub-CTH Description of goods Standard Rate (1) (2) (3) (4) 405 84 or any other Chapter The following goods, namely :- (1) Omitted (2) Parts and sub-parts for the manufacture or the maintenance of wind operated electricity generator components, namely :- (a) Special bearings, ....
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....parable part of the entire structure of WOEG; As submitted above, processes such as loading, cutting, chamfering, stacking, infusion of resin, moulding, laying up on main girder etc. are merely undertaken on the Plates which neither alters/ transforms the basic structure of the Plates nor convert the same into a different product. These processes merely prepare it to be finally embedded on the Rotor Blades for its peak performance. Without such Plates, the Rotor Blade cannot function to its optimum capacity. Such Plates are used to achieve greater efficiency, reduce weight, and provide better design and aerodynamic profile. The Plates provide strength, rigidity, and durability to the working of Rotor Blade; Therefore, in view of the above, it is submitted that the imported Plates are squarely covered as parts for manufacturing Rotor blades and the Applicant is entitled to claim the benefit of concessional rate of BCD in terms of Sr. No. 405(4) of the exemption Notification. Port of Import and reply from concerned jurisdictional Commissionerate 4. The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Carbon Pultruded Plates at the juri....
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....erated the contention submitted with the application that they intend to import "Carbon Pultruded Plates" for manufacturing blades of rotor of wind operated electricity generator (WOEG). They explained the use of the said goods in manufacturing of WOEG blades. They submitted a written submission against the query raised by the authority. They also submitted some photographs of the process/WOEG blades. They sought specific clarification on the question that whether the subject goods i.c. Carbon Pultruded Plates would fall under the sr. no. 405(4) or sr. no. 405 (5) of the notification no. 50/2017-Customs dated 30.06.2017 (as amended) through notification no. 05/2025-Customs dated 01.02.2025 for the purpose of exemption. 5.2 Nobody appeared on behalf of the Department for hearing. Discussion and findings 6. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing and comments received from the ACC, Mumbai Commissionerate. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal provisions. 6.1 At the outset, I ....
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.... While manufacturing such Rotor Blade, light weight, yet strong materials, such as "Carbon Fibre" is used featuring an airfoil shape similar to an airplane wing (i.e., Plate form) to maximize lift and rotation. These Carbon Fibre, play a crucial role in manufacturing Rotor Blades as they provide high strength and stiffness, and at the same time have weight reducing capabilities which help in providing stability and efficiency in functioning of such blade. Moreover, with the use of "Carbon Fibre", blades acquire aerodynamical efficiency and can withstand extreme stresses. A detailed step wise production process inter alia including the use of "Carbon Fibre" in the process of manufacturing Rotor Baldes is explained below for reference: In the present case, the applicant is not using the carbon fibres but carbon pultruded plates are used in the manufacturing of the Rotor Blade of WO.EG. These plates serve as a spar cap in the rotor blade which is structural backbone of the blade. Made through pultrusion process, they provide exceptional strength, stiffness, and low weight, enabling engineers to design longer and more efficient blades. 6.3.1 Now, I will discuss the classification....
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.... (b) Gear box, (c) Yaw components, (d) Wind turbine controllers, and (e) Parts of the goods specified at (a) to (d)" 5% (8) Blades for rotor of wind operated electricity generators, for the manufacture or the maintenance of wind operated electricity generators 5% (9) Parts for the manufacture or the maintenance of blades for rotor of wind operated electricity generators 5% (10) Raw materials for the manufacture of - (a) blades for rotor of wind operated electricity generators, or (b) parts, sub-parts of such blades" 5% ... ... ... ... From the above, it is clear that notification benefit is available to all raw materials for the manufacture of - (a) blades for rotor of wind operated electricity generators, or (b) parts, sub-parts of such blades" But post amendment (w.e.f. 01.02.2025), Notification No. 05/2025-Cus substituted this entry as: "Balsa Wood, Carbon Fibre for the wind operated electricity generator blades". Thus, the scope of Sr. No. 405(5) was narrowed down by the amendment. Instead of generic "raw materials", only two items are now covered un....
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...." and "Raw Materials" as under: Sr. No Dictionary Parts Raw Material 1 Cambridge A separate piece of something, or a piece that combines with other pieces to form the whole of something; one of the pieces that together form a machine or some type of equipment A substance in its natural state that will be used to make something else in an industrial process 2 Oxford Part of something some but not all of a thing; a section, piece or feature of something; a piece of a machine or structure Unprocessed material 3 Brittanica One of the pieces, sections, qualities, etc., that make or form something; one of the pieces that are put together to form a machine The basic material that can be used to make or create something 4 Webster One of the often indefinite or unequal subdivisions into which something is or is regarded as divided and which together constitute the whole Crude or processed material that can be converted by manufacture, processing, or combination into a new and useful product From a bare perusal of the above, it is evident that raw materials are those items which undergo substantive changes before transforming whe....
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....spar cap is shown below: From the above photograph, it is evident that spar caps are integral part of a rotor blade and carbon pultruded plates are used in manufacturing of the spar cap therefore, it can be implied that the subject goods "carbon Pultruded Plates" are part of spar cap. Further, it is a settled principle of law that "a part of a part is a part of the whole" i.e., a sub-component of a component of a machine/apparatus is to be categorized as a component of the machine. The said principle has been upheld in the case of Collector of Central Excise v Mahendra Engg. Works [1993 (67) ELT 134 (Tribunal)] and Collector of C. Ex. Vs. MP (I) Ltd [1990 (46) ELT 68 (Tribunal)] In the instant case, the "Carbon Pultruded Plates" are sub-parts meant to be used in manufacturing of spar cap and accordingly shall qualify as parts of rotor blade. 6.5.3 Key Functions of Spar Cap in Rotor Blades: Load Bearing: The primary function of the spar caps is to bear the loads (both gravitational and wind-induced) that the blades experience. They ensure the blade maintains its shape and structural integrity even under extreme conditions. Enhanced Performance: Carbon fibe....
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.... spar caps are continuous and can be made to various lengths. They offer consistent quality and are efficient to produce but are generally limited to simpler cross- sectional shapes. 6.5.6 Advantages of Pultruded Spar Caps Efficient and Continuous: Pultrusion is highly efficient and can continuously produce long lengths of material. High Strength and Consistency: The process yields products that are consistent in quality, with high strength and stiffness due to the alignment of the fibers. Cost-Effective: Once set up, pultrusion is relatively low-cost for mass production, especially for standard profiles. From the above, it can be observed that carbon pultruded plates are used as spar cap in rotor blade to provide greater efficiency, reduction in weight, better design and aerodynamic profile. The Plates also provide strength, rigidity, and durability to the working of Rotor Blade. Hence, it can be ruled that carbon pultruded plates are parts of rotor blade that are embedded in Rotor Blades in such a manner that these cannot be easily removed at any given instance significantly damaging the blade's integrity which is not a feasible or safe process. T....