2013 (6) TMI 243 - AAR - Customs

Eligibility of the transformers for exemption from additional duty of customs leviable under Section 3(1) of the Customs Tariff Act, 1975 in terms of Notification No. 06/2006-Central Excise dated 1st March, 2006. - Held that - imported transformers are not covered by the entry at Serial No. 13 of List 5 read with the entry at Serial No. 84 of the Table to the Notification No. 6/2006-Central Excise and consequently will not be eligible for the benefit of exemption from the levy of additional duty in terms of the said Notification No. 06/2006-C.E.

Summary

Issues: Eligibility of transformers for exemption from additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975 in terms of Notification No. 06/2006-Central Excise dated 1st March, 2006.

The judgment involves M/s. Enercon (India) Limited, a joint venture company manufacturing Wind Operated Electricity Generators (WOEG) in collaboration with Enercon GmbH of Germany. The company sought a ruling on the eligibility of specially designed transformers for exemption from additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975. The applicant inquired whether the transformers imported for wind-operated generators would be eligible for exemption under Notification No. 06/2006-Central Excise. The applicant also filed a separate application for the same ruling on transformers manufactured in India under the same notification. The Authority ruled that imported transformers are not covered by the exemption and would not be eligible for the benefit under the notification.

The applicant, M/s. Enercon (India) Limited, sought a ruling on the eligibility of specially designed transformers for exemption from additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975, as per Notification No. 06/2006-Central Excise. The transformers were intended for use in wind-operated electricity generators E-48/E-53 (800 KW) manufactured by the applicant in India. The ruling addressed whether the imported transformers would qualify for exemption under the specified notification. The Authority clarified that the imported transformers did not fall within the exemption criteria outlined in the notification, leading to the denial of the benefit of exemption from the levy of additional duty.

The judgment highlighted that the issue in question was identical in both the application for imported transformers and the application for transformers manufactured in India, with the only difference being the source of the transformers. Despite the identical specifications of the transformers, the ruling determined that the imported transformers were not covered by the exemption provision in Notification No. 06/2006-Central Excise. Consequently, the imported transformers were deemed ineligible for the benefit of exemption from the levy of additional duty under the said notification. The ruling was delivered on the 18th of March, 2011, affirming the decision on the eligibility of the transformers for exemption from additional duty of customs.