9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 1207 - AT - Central ExciseDenial of the benefit of N/N. 6/2006, dated 1-3-2006 - anchor rings and load spreading plates - Held that - the anchor rings and the load spreading plates are specifically designed for the purpose of attaching the tower to the ground by providing necessary bolts for the same. The anchor rings and the load spreading plates are an extension of the tower, though the same is fixed to the foundation first and later attached to the tower. Thus they are parts of the tower - the anchor rings and load spreading plates are parts of tower specially designed for wind operated electricity generators and are eligible for exemption under Notification No. 6/2006, dated 1-3-2006 - matter on remand.
Issues Involved:
1. Denial of benefit of Notification No. 6/2006 to M/s. Rakhoh Enterprises for anchor rings and load spreading plates. 2. Denial of benefit of Notification No. 6/2006 to M/s. Gemini Instratech Pvt. Ltd. for windmill doors. Detailed Analysis: 1. Denial of Benefit of Notification No. 6/2006 to M/s. Rakhoh Enterprises: 1.1 M/s. Rakhoh Enterprises were issued a show cause notice to deny the benefit of Notification No. 6/2006, dated 1-3-2006, for anchor rings and load spreading plates. A duty of ?5,36,83,121/- was confirmed for the period February 2008 - January 2013, along with an equivalent penalty under Section 11AC of the Central Excise Act, 1944, and interest under Section 11AB/11AA. 1.2 The High Court, in Writ Petition No. 7889 of 2015, observed that the Tribunal should have referred the petitioner’s case to the Larger Bench as it involved the same notification and required interpretation. The High Court quashed the Tribunal’s order dated 25-9-2014 and directed that the issue be referred to a Larger Bench for decision. The Tribunal was instructed to decide all three appeals in accordance with the Larger Bench's interpretation of the Notification. 1.3 The Tribunal examined whether the benefit of Notification No. 6/2006 could be extended to anchor rings and load spreading plates. The appellant argued that these items are parts of the wind-operated electricity generator, essential for providing stability and support to the structure. The AR countered that these items are part of the foundation, not the tower, and thus not covered under the exemption. 1.4 The Tribunal found that anchor rings and load spreading plates are designed to attach the tower to the ground, making them parts of the tower. Consequently, they are eligible for exemption under Notification No. 6/2006. 2. Denial of Benefit of Notification No. 6/2006 to M/s. Gemini Instratech Pvt. Ltd.: 2.1 M/s. Gemini Instratech Pvt. Ltd. were denied exemption for windmill doors under Notification No. 6/2006 for the periods April 2008 - September 2008, October 2006 - March 2007, and April 2007 - March 2008. The demands confirmed were ?10,84,298/-, ?47,59,163/-, and ?45,23,649/- respectively, along with penalties and interest. 2.2 The Tribunal referred the matter to a Larger Bench to determine whether windmill doors qualify for exemption under Notification No. 6/2006, which grants exemption to “wind operated electricity generator, its components and parts thereof including rotor wind turbine controller.” 2.3 The appellant argued that the issue was settled by the Supreme Court in their own case (2015 (323) E.L.T. 220 (S.C)), where it was held that windmill doors are parts of the wind-operated electricity generator. The AR relied on the impugned order. 2.4 The Tribunal agreed with the appellant, referencing the Supreme Court’s decision that windmill doors, being safety devices, are parts of the generator. Thus, the Tribunal held that windmill doors are entitled to exemption under Notification No. 6/2006. Conclusion: The appeals of M/s. Gemini Instratech Pvt. Ltd. and M/s. Rakhoh Enterprises were remitted back to the referral Bench for appropriate orders, in line with the interpretations provided by the Larger Bench. The Tribunal concluded that both anchor rings and load spreading plates, as well as windmill doors, qualify for exemption under Notification No. 6/2006.
|
