Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise and Customs
New Delhi
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Circular No. 1008/15/2015-CX
Dated, the 20th October, 2015
To
Principal Chief Commissioner / Chief Commissioner of Central Excise (All),
Principal Commissioner of Central Excise / Commissioner of Central Excise (All),
Web-master, CBEC
Madam/sir,
Subject: - Clarification regarding tower and blades constitute an
essential component of Wind Operated Electricity Generators (WOEG)-reg.
A large number of references have been received from the trade as well as the
field formations to clarify whether exemption
Notification No. 12/2012-Central
Excise, dated 17.03.2012 covers part/components of Wind Operated Electricity
Generators (WOEG). References have been received in relation to tower, tower
doors, blades and electrical boxes.
- The matter has been examined. In the aforesaid notification serial no. 332
read with List 8 exempts Wind operated electricity generator, its component and
parts thereof including rotor and wind turbine controller from Central Excise
duty. In this regard, attention is invited to the judgement of Honble Supreme
Court dated 13th August, 2015 in case of M/s Gemini Instratech Vs Commissioner
of Central Excise, Nashik in Civil Appeal No. 1218 of 2006, wherein Honble Apex
Court (while deciding the eligibility of wind mill doors and electrical boxes of
WOEG for exemption) has held that-
"It is not in dispute that as far as windmill doors or tower doors are
concerned, it is a safety device which is used as security for high voltage
equipments fitted inside the tower, preventing unauthorized access and
preventing entries of reptiles, insects, etc, inside the tower. This, according
to us, would be sufficient to make it part of electricity generator. We further
find that this was so held by the Commissioner of Central Excise and Customs,
Raipur in orderinoriginal dated 28.02.2005 as well as by the Commissioner
(Appeals), Raipur vide his orders dated 10.02.2003. The said orders were
accepted by the Revenue as it is recorded by the CESTAT that the Revenue could
not produce any evidence to show that those orders were challenged by it.
Further, since the tower is held as part of the generator, door thereof has to
be necessarily a part of the generator. We, therefore, are of opinion that there
is no case of interference made out by the Department.
The appeal is accordingly dismissed"
- Ministry of New and Renewable Energy had earlier clarified to CBEC on the
subject that the following are parts of Wind Operated Electricity Generators.
- Tower: which supports the nacelle and rotor assembly of a wind operated
electricity generator.
- Nacelle: which consists of gear-box, generator, yaw components, flexible
couplings, brake hydraulics, brake calipers, sensors, nacelle plate, nacelle
cover and other smaller components.
- Rotor: consists of blades, hub, nosecone, main shaft, special bearings.
- Wind turbine controller, nacelle controller and control cables.
- In view of the judgement of Honble Supreme Court and clarification received
from the administrative ministry, parts/components referred in Para 3 above may
be treated as parts and components of wind operated electricity generators
eligible for exemption under serial no. 332 of
Notification No. 12/2012-Central
Excise, dated 17.03.2012.
- For any clarification regarding parts and component of WOEG, not covered in para 3 above, opinion of Ministry of New and Renewable Energy would be sought by
the Board, if required. Issues relating to exemption of parts and components of
WOEG not covered in para 3 above may be referred to Board through the Chief
Commissioner concerned, if required.
- Difficulty experienced, if any, in implementing the circular should be
brought to the notice of the Board. Hindi version would follow.
F.No.201/08/2015-CX.6
(Santosh Kumar Mishra)
Under Secretary to the Government of India
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