Commissioner of Customs Vs Siemens Gamesa Renewable Power Pvt. Ltd. (CESTAT Chennai)
The case of Commissioner of Customs vs. Siemens Gamesa Renewable Power Pvt. Ltd. before CESTAT Chennai concerned the imposition of Countervailing Duty (CVD) on certain imported components of Wind Operated Electricity Generators (WOEG) from China. The Respondent-Importer had imported specific parts, including Conj. Gen. Cant 6 ASyn. 2 MW 0.95 50 HZ STD GP 252529-FTA, rotor lock bushings, and other pins and supports, which were components of wind turbines. The issue arose under Notification No. 1/2016-Customs (CVD) dated 19.01.2016, which authorized CVD on “castings for wind-operated electricity generators” in raw, finished, or sub-assembled form, or as part of a sub-assembly or component. The Department had provisionally assessed these imports under Section 18 of the Customs Act, 1962, allowing clearance against a bank guarantee for 50% of the CVD levied.
The Respondent contended that the Notification applied only to castings, not to fully developed parts or components that had acquired distinct nomenclature and functionality. They argued that the imported items, although originating from castings, were transformed through value addition into distinct articles and should not attract CVD in their imported form. The contention emphasized that only “castings simpliciter” were subject to the levy, and that applying CVD to processed or distinct parts would overlook the value addition and misinterpret the scope of the Notification.
