LM Wind Power Blades (India) Private Ltd (the Appellant) is a manufacturer of Rotor Blades and had filed Bills of Entry for import of goods used for manufacture of Rotor Blades (impugned goods). The Appellant imported impugned goods and claimed exemption from Countervailing duty (CVD) under Sl. No. 237A of Notification No. 6/2002-Central Excise dated March 1, 2002 as amended by Notification No. 29/2005-Central Excise dated May 31, 2005 (the Exemption Notification).
The Revenue alleged that the exemption availed was wrong as the impugned goods were not classifiable under Chapter heading specified in the Exemption Notification. Therefore, proceedings were initiated against the Appellant demanding differential Customs duty of Rs. 1,48,92,523/-. The Adjudicating Authority as well as the Commissioner (Appeals) confirmed the demand reclassifying the impugned goods and denied the CVD exemption. Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Chennai.
The Hon’ble CESTAT, Chennai held as under:
specified in table read with concerned list appended and falling within chapter, heading number or sub heading number of the First Schedule to the CETA. Hence, both the criteria, impugned goods confirm description and fall under heading or sub heading of the first Schedule of the CETA are to satisfied to avail exemption.
Hence, the Hon’ble Tribunal held that the Adjudicating Authority has rightly classified the impugned goods and denied CVD exemption to the Appellant.