2017 (8) TMI 1517 - AT - Central Excise

Benefit of N/N. 6/2002-C.E., dated 1-3-2002 - power cables manufactured by the appellant - Held that - It appears that the subject items viz., control cable (which is also called power cable ) which are meant for control application (Supervisory Control and Data Acquisition - SCDA in modern wind power plant); and therefore, would be covered in Column 3 of the Table annexed to the Notification No. 6/2002-C.E., dated 1-3-2002 read with Sl. Nos. 13 and 21 of the List 9 appended thereto - In this regard, the CBEC (Central Board for Excise and Customs, New Delhi) has also issued a Clarification F. No. 201/08/2015-CX.6, dated 20-10-2015 whereunder in its Clause (iii) reference has been made to the clarification given by the Ministry of New and Renewable Energy, which states that wind turbine controller, nacelle controller and control cables are parts of Wind Operated Electricity Generators, which have been mentioned at Sl. No. 13 of List 9 read with Sl. No. 237 of the Table Annexed to the Notification No. 6/2002-C.E., dated 1-3-2002. When the Ministry of New and Renewable Energy has clarified to CBEC, as mentioned in the CBEC Circular dated 20-10-2015 referred above that control cables are parts of Wind Operated Electricity Generators, there cannot be any doubt that subject items are entitled to the benefit of Notification No. 6/2002-C.E., dated 1-3-2002. Benefit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against denial of exemption under Notification No. 6/2002-C.E. for power cables.

Analysis:
The appellant, a manufacturer of flexible cables and connectors, availed exemption under Notification No. 6/2002-C.E. for power cables supplied to wind mill projects. The Revenue contended that the appellant was not entitled to the exemption, leading to a Show Cause Notice for recovery of duty, interest, and penalty. The original adjudicating authority ruled in favor of the appellant, but the Commissioner (A) reversed the decision, prompting the appeal before the Tribunal.

Upon thorough examination, the Tribunal found that the power cables in question were control cables meant for control application in wind power plants. Referring to CBEC's clarification and Ministry of New and Renewable Energy's statement, the Tribunal concluded that control cables are integral parts of Wind Operated Electricity Generators, falling under the purview of the exemption notification. The Tribunal highlighted that previous Supreme Court judgments cited by the Revenue were inapplicable to the current scenario.

Based on the evidence and clarifications provided, the Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The decision was pronounced in open court on 24-8-2017, with the appellant successfully establishing entitlement to the benefit of Notification No. 6/2002-C.E. for the power cables supplied to wind mill projects.