No Exemption of Central Excise Duty for ‘Module Mounting Structures’ used in Solar Power Water Pumping Systems: CESTAT [Read Order]

No Exemption - Central Excise Duty - Module Mounting Structures - Solar Power - Water Pumping Systems - CESTAT - taxscan

The Principal Bench of New Delhi Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that no exemption of central excise duty for ‘module mounting structures’ used in solar power water pumping systems.

The appellant M/s Raydean Industries manufactured ‘module mounting structures’ with manual tracking facility and supplied the same to suppliers of solar power water pumping systems for irrigating agriculture fields. The material was sent to the location where the solar panels or solar water pumps were installed.

The appellant claimed exemption from payment of central excise duty on module mounting structures, as they are parts of the solar generating system and cleared the goods against ‘Nil’ payment of central excise duty under serial no. 332. Principle Commissioner disagree with the view and hence the appellant id before the Tribunal.

The Tribunal observed that only such parts are exempted from payment of central excise duty, those are consumed within the factory of production of such parts for the manufacture of goods specified at serial numbers 1 to 20 and not parts of water pumping station. It needs to be noted that entry number (10) of List 8 mentions ‘solar power generating system’ and not ‘module mounting structures’.

The Coram of Mr. Justice Dilip Gupta, President and Mr. P.V. Subba Rao, Member (Technical) has held that “there is, therefore, no infirmity in the impugned order dated 15.07.2019 passed by the Principal Commissioner. The appeal is, accordingly, dismissed”.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

taxscan-loader