Aluminium structures and Fabricated items used as Towers of (WOEG) is Eligible for Exemption from Central Excise Duty under Exemption Notification: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the aluminium structures and fabricated items used as towers of wind-operated electricity generators (WOEG) were eligible for exemption from the central excise duty under Exemption Notification. 

Barga India Private Ltd, the appellant assessee was registered with Central Excise Department and was engaged in the manufacture of excisable goods as articles of aluminium’. The assessee appealed against the order passed by the adjudicating authority for rejecting the exemption and confirmed the demand along with interest and penalty. 

Tarun Jain and Harsh Shulkla, the counsels for the assessee contended that the goods manufactured by the assessee are aluminium platforms and steel/aluminium structures and 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. 

It was also submitted that the goods supplied by the assessee are an integral part of the manufacturing of the WOEG and thus fall within the scope of exemption notification and the claim of exemption made by the assessee was based upon a declaration of the manufacturer of WOEG that the goods manufactured by the assessee are exclusively used for the manufacture of WOEG. 

Ananda Lakshmi Ganeshram, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not eligible for exemption under the exemption notification and that the decision made by the adjudicating authority was liable to be sustained. 

The bench observed that the aluminium structures and fabricated items used as towers are an integral part of Wind Turbines or Wind Operated Electricity Generators (WOEG) was eligible for exemption from the central excise duty under exemption notification.

The two-member bench comprising Sulekha Beevi (Judicial) and Ajith Kumar (Technical) held that goods are eligible for exemption and quashed the order passed by the adjudicating authority while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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