CBEC
Clarifies Doors and Electrical Boxes are Components of Wind Mill
[CBEC Circular No. 1008 dated 20th October 2015]
Subject: - Clarification regarding tower and blades constitute an
essential component of Wind Operated Electricity Generators (WOEG).
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.
2. 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 Hon’ble 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 Hon’ble
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 order in original 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" ’’
3. Ministry of New and
Renewable Energy had earlier clarified to CBEC on the subject that the
following are parts of Wind Operated Electricity Generators.
i) Tower: which supports
the nacelle and rotor assembly of a wind operated electricity generator.
ii) Nacelle: which consists of gear-box, generator, yaw components, flexible
couplings, brake hydraulics, brake calipers, sensors, nacelle plate, nacelle
cover and other smaller components.
iii) Rotor: consists of
blades, hub, nosecone, main shaft, special bearings.
iv) Wind turbine
controller, nacelle controller and control cables.
4. In view of the judgement of Hon’ble 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.
5. 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.
6. Difficulty experienced,
if any, in implementing the circular should be brought to the notice of the
Board.
F.No.201/08/2015-CX.6