Flanges are part of Wind Operated Electricity Generators, eligible for Excise Duty Exemption: CESTAT [Read Order]
Central Board of Excise and Customs(CBEC), Department of Revenue, Ministry of Finance had issued a clarification that parts such as tower, nacelle, rotor, blades, wind turbine controller etc. of WOEG are eligible for exemption from Central Excise duty
Wind Operated Electricity Generators – Flanges exemption – Excise Duty Exemption – Renewable energy – CESTAT – taxscan
Wind Operated Electricity Generators – Flanges exemption – Excise Duty Exemption – Renewable energy – CESTAT – taxscan
The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) has held that flanges are part of Wind Operated Electricity Generators ( WOEG ), under Notification No. 12/2012-Central Excise, dated 17.03.2012.
The CESTAT bench also observed that flanges are eligible for the exemption as per notification no. 12/2012.
Assessee, Gamessa Wind Turbine Pvt Ltd contended that flanges are used in the Tubular towers of the WOG. The other parts of such wind power plants are Lattice tower, Ferro-Concrete tower, Hybrid tower and Guyed tower. These towers are nothing but support structure for wind turbines. Though towers are part of WOEG, the flanges cannot be considered as part of WOEG and are just items of general use.
These items merit classification under sub heading Indian Customs Duty of 730791. It is thus argued by Ld. Respondent that the items are not eligible for the benefit of notification 12/2012 dated 17.3.2012.
Respondent argued that the flanges are integral to and specifically designed for the construction of the towers of WOEGs. The CBIC has clarified that the tower, nacelle, motor, wind turbine controller are all parts of WOEG and would be eligible for exemption.
The bench comprising Vasa Sheshagiri Rao ( Member, Judicial ) and Sulekha Biwi C.S ( Member, Technical ). The bench held that flanges are parts of WOEG and are classifiable under 8503 and not CTH 7307 as claimed by the department. It was also held that the flanges are eligible for the exemption as per notification no. 12/2012.
The assessee was represented by R. Raja Raman. Revenue was represented by Rohan Muralidharan.
To Read the full text of the Order CLICK HERE
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