Barga India Private Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that aluminium structures and fabricated items used as towers are integral part of Wind Turbines or Wind Operated Electricity Generators (WOEG) so as to be eligible for exemption under Notification No.12/2012-CE dated 17.03.2012.
Facts- The appellant is engaged in the manufacture of excisable goods falling under Chapter 7610-9090 -‘Other – as articles of aluminium’ of CETA 1985.
During the course of audit of accounts of the appellant, it was noticed that the appellant had cleared goods viz. structures of aluminium etc. falling under CETH 7610-9090 and the appellant had not paid central excise duty on such clearances claiming exemption under Notification No.12/2012-CE dated 17.03.2012. Such goods collectively bundled and called as ‘Assembly pallets’ or ‘Tower Internals’ were claimed by appellant to be parts of Wind Mills / Wind Operated Electricity Generators (WOEG).
The department was of the view that such goods are general purpose equipment and are not specific parts of the WOEG. The audit team objected to the availing of exemption.
Hence, show cause notice was issued to the appellant proposing to demand duty on the goods for the period July 2014 to March 2016 along with interest and also for imposing penalties. After due process of law, the original authority held that the above goods are not eligible for exemption and confirmed demand along with interest and imposed penalties. Aggrieved by such order, the appellant is now before the Tribunal.
Conclusion- Tribunal in the case of RRB Energy Ltd. Vs. CC Chennai held that the goods are eligible for exemption. After appreciating the facts and applying the ratio of the above decisions, we are of the considered view that the goods are eligible for exemption.
Held that aluminium structures and fabricated items used as towers are integral part of Wind Turbines or Wind Operated Electricity Generators (WOEG) so as to be eligible for exemption under Notification No.12/2012-CE dated 17.03.2012.
FULL TEXT OF THE CESTAT CHENNAI ORDER
Brief facts are that the appellant is registered with Central Excise Department and is engaged in the manufacture of excisable goods falling under Chapter 7610-9090 -‘Other – as articles of aluminium’ of CETA 1985. During the course of audit of accounts of the appellant on 14.10.2014 and 15.10.2015, it was noticed that the appellant had cleared goods viz. structures of aluminium etc. falling under CETH 7610-9090 and the appellant had not paid central excise duty on such clearances claiming exemption under Notification No.12/2012-CE dated 17.03.2012.. Such goods collectively bundled and called as ‘Assembly pallets’ or ‘Tower Internals’ were claimed by appellant to be parts of Wind Mills / Wind Operated Electricity Generators (WOEG). The department was of the view that such goods are general purpose equipment and are not specific parts of the WOEG. The audit team objected to the availing of exemption. Subsequently, show cause notice was issued to the appellant proposing to demand duty on the goods for the period July 2014 to March 2016 along with interest and also for imposing penalties. After due process of law, the original authority held that the above goods are not eligible for exemption and confirmed demand along with interest and imposed penalties. Aggrieved by such order, the appellant is now before the Tribunal.
2. Ld. Counsel Sri Tarun Jain Advocate along with Harsh Shukla Advocate appeared and argued for the appellant. It is submitted that the goods manufactured by the appellants are (a) Aluminium Platforms and (b) Steel/Aluminium Structures. Along with these manufactured items, the appellant is also supplying bought out items namely (c) Ladders (d) cables (e) LEDs (f) Fasteners (g) Rubber Profiles and (h) Locks and other accessories as mentioned in the Bill of Materials. All these are manufactured / supplied by the appellant on the basis of purchase orders received from M/s.Gamesa Wind Turbines Pvt. Ltd. and Vestas Wind Technology India Pvt. Ltd. in accordance with the drawing and designs provided by them. These buyers have confirmed to the appellant that they were engaged in manufacture of WOEG and the goods supplied by the appellant were exclusively meant for manufacture of WOEG. This fact was also confirmed independently by a third party Chartered Engineer vide certificate dt.21.02.2017.
3. On such premise, the appellant has claimed exemption from payment of central excise duty on its activities in terms of Notification No.12/2012-CE dated 17.03.2012 at Sl.No.332 read with list 8 which unconditionally exempts the following :
