In a recent decision the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the Imported Tubular Tower are parts of Wind Operated Electricity Generator, eligible for Customs Duty Exemption.
The issue that arises for analysis in the appeal is whether the imported goods (Tubular Tower) are parts of the Wind Operated Electricity Generator and eligible for benefit of exemption under Notification No.06/2006- CE (Sl. No.84).
The appellant, M/s. RRB Energy Ltd, availed benefit of 7.5% of Basic Customs Duty (BCD) and ‘nil’ rate of Countervailing Duty (CVD) under Sl.No.84 of the Notification No.06/2006 for the importation of the said towers. The Department was of the view that the towers are classifiable under CTH 7308 and therefore not eligible for the benefit of notification.
The Counsel Ms. Shobana Krishnan appeared and argued for the appellant. It is submitted that the appellant is engaged in the business of Wind Power Generation and manufacturing of Wind Operated Electricity Generator (WOEG).
The Counsel submitted that the issue is no longer res integra and settled by the judgment of the Supreme Court in the case of CCE Nagpur Vs. Hyundai Unitech Electrical Transmission Ltd. Further the Board vide Circular No. 1008/15/2015-CX dated 20.10.2015 has issued clarifications and instructions and clarified thatowers which support the nacelle, rotor wind operator electricity generator has to be treated as parts and components of WOGE and is eligible for exemption.
The Authorized Representative S. Balakumar supported the finding in the impugned order.
The Bench consisting of SulekhaBeevi CS, judicial Member and Vasa Seshagiri Rao, Technical Member observed that “After appreciating the facts and following the decision of the Apex Court as discussed above, we are of the considered opinion that the appellant is eligible for the benefit of exemption as per the Notification No.6/2006-C.E”
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