2002 (5) TMI 112 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification 205/88-C.E. regarding exemption for parts of wind mills and specially designed devices for wind mills.

Summary:
The Appellate Tribunal CEGAT, Chennai considered the eligibility of control panels, programmable logic control systems, and automation systems used in wind operated electricity generators for exemption under Notification 205/88-C.E. The Commissioner (Appeals) found that the control panels were specifically designed for wind mills and eligible for exemption under Sl. No. 12 of the notification. The Revenue contended that control panels fall under Chapter Heading 85.37 and wind mill parts under 8412.90, thus not qualifying for the exemption. However, the Tribunal upheld the Commissioner's decision, noting that the notification does not restrict benefits based on specific chapter headings. The Tribunal emphasized that the control panels were designed exclusively for wind mills, supported by the Electrical Inspectorate's confirmation and Section XVI of the Central Excise Tariff Act, 1985. Previous cases were cited to support the broad interpretation of exemptions without tariff restrictions. Consequently, the Revenue appeals were rejected based on the specific design and use of the control panels for wind mills, in line with the exemption notification's intent.