2004 (7) TMI 259 - AT - Central Excise

Summary

Issues involved: Interpretation of notifications No. 3/01 and 6/02-C.E. for exemption claim on Dusk Dawn System.

In this case, the appellant filed appeals against the Order-in-Original passed by the Commissioner of Central Excise, claiming exemption under notifications No. 3/01 and 6/02-C.E. for goods declared as Dusk Dawn System. The appellant argued that the system, comprising electronic controller and Solar Photovoltaic Module, automatically switches off street lights based on ambient light levels, functioning on solar energy to save power and increase lamp life. The Revenue contended that only the Solar Photovoltaic Module part could be considered a 'Solar Power Generating System,' not the entire system. The relevant portion of Notification No. 6/02 was cited, covering non-conventional energy devices/systems, including Solar Power Generating systems. The adjudicating authority noted the SPV module as a power generating system but denied the benefit of the notification based on the appellant's claim for the entire system. However, it was argued that since the system as a whole operates on solar power, it should be considered a Solar Power Generating System, entitling it to the notification's benefits.

The adjudicating authority acknowledged the Solar Photovoltaic Module as a Solar Power Generating System, but disputed the appellant's claim that the entire Dusk Dawn System qualified as such. The authority differentiated between the power generating part (SPV module) and the application part (controllers and switches), stating that only the SPV module functioned as a solar power generating system. The appellant's contention that the entire system should be considered a Solar Power Generating System was deemed incorrect. The authority highlighted that the SPV module absorbs solar energy to generate electrical energy for the system's operation, making it the sole part functioning as a solar power generating system. The notification provided exemption for non-conventional energy devices/systems listed in List 9, which includes Solar Power Generating systems. The conclusion was drawn that since the entire Dusk Dawn System operates on solar power, it should be classified as a Solar Power Generating System, warranting the benefit of the notification. Consequently, the denial of the notification's benefit by the adjudicating authority was deemed unsustainable, leading to the setting aside of the impugned order and allowing the appeals.