Commissioner of Customs (Port-Import) Vs Gamesa Wind Turbine Pvt Ltd (CESTAT Chennai)
The case involves an appeal by the Commissioner of Customs (Port-Import) against Gamesa Wind Turbine Pvt Ltd regarding the classification of imported flanges. The primary dispute is whether the flanges should be classified under CTH 73072100, as contended by the department, or under CTH 8503, as upheld by the Commissioner (Appeals). Additionally, the question of eligibility for excise duty exemption under notification no. 12/2012 is addressed.
Key Arguments:
a. Department’s Argument:
- The department argues that the flanges, though used in wind-operated electric generators (WOEG), are items of general use and should be classified under CTH 73072100.
- The contention is that towers, including lattice towers, ferro-concrete towers, hybrid towers, and guyed towers, are parts of WOEG, but flanges are not.
b. Respondent’s Argument:
- Gamesa Wind Turbine Pvt Ltd contends that the flanges are integral and specifically designed for the construction of WOEG towers.
- Reference is made to a CBIC circular clarifying that towers, nacelle, motor, and wind turbine controller are all parts of WOEG and eligible for exemption.
c. Legal Precedent: The respondent cites the decision of the Hon’ble Supreme Court in the case of M/s. Gemini Instratech Vs. CCE, wherein it was held that towers are parts of WOEG and eligible for exemption.
Tribunal Decision – M/s Sew Eurodrive India Pvt. Ltd.:
