In re Suzlon Energy Limited (CAAR Mumbai)
Suzlon Energy Limited filed an application before the Customs Authority for Advance Rulings, Mumbai (CAAR) seeking clarity on the applicable rate of Basic Customs Duty (BCD) for the import of “Carbon Pultruded Plates.” The application was received on 22 July 2025 under Section 28H(1) of the Customs Act, 1962. The core issue was whether these goods were eligible for a concessional BCD rate of 5% under Sr. No. 405(5) or alternatively under Sr. No. 405(4) of Notification No. 50/2017-Customs, as amended by Notification No. 05/2025-Customs dated 1 February 2025.
The applicant is a vertically integrated manufacturer of wind operated electricity generators (WOEG) and related components, including rotor blades. In manufacturing rotor blades, the applicant imports Carbon Pultruded Plates, which are used as spar caps—the primary load-bearing structural element of the blade. These plates are produced through a pultrusion process using carbon fibre and resin, resulting in high-strength, lightweight composite plates.
The applicant classified the imported goods under tariff heading 68151900 as “other articles of carbon fibres,” attracting a standard BCD rate of 10%. Prior to 2 February 2025, the applicant had availed concessional duty by treating the plates as “raw materials” under Sr. No. 405(5) of the notification, which then covered raw materials for manufacturing rotor blades. After amendment, Sr. No. 405(5) was narrowed to cover only “Balsa Wood” and “Carbon Fibre” for wind turbine blades. The applicant therefore sought a ruling on whether Carbon Pultruded Plates could still qualify as “Carbon Fibre” under Sr. No. 405(5) or, alternatively, as “parts” under Sr. No. 405(4), which grants a concessional rate to parts for the manufacture or maintenance of rotor blades.
