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TMI Blog2017 (8) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the eligibility of the items viz. ‘doors of windmills’ under the exemption under N/N. 6/2006-CE as amended observed that these are parts of ‘Wind Operated Electricity Generator’ (WOEG) and eligible to the benefit of notification. The items in question definitely be considered as ‘components’ of the reflector, undisputedly used being required for initial setting up of a solar power generation project or facility, hence eligible to the benefit of exemption N/N. 15/2002CE dt.27.02.20010, as amended - appeal allowed - decided in favor of appellant. - E/11101/2016-DB - A/11363/2017 - Dated:- 7-7-2017 - Dr. D.M. Misra, Member (Judicial) And Mr. Raju, Member (Technical) For Appellant: Shri J.C. Patel, Advocate For Respondent: Shri Sameer Chitkara, A.R. (Addl. Commissioner) ORDER Per: Dr. D.M. Misra This is an appeal filed against the OIO No.AHM-EXCUS-002-COMMR-4/2015-16, dt.09.03.2016, passed by Commissioner (Appeals), C.Ex. S.Tax, Ahmedabad. 2. Briefly stated the facts of the case are that the Appellants are engaged in the manufacture of pre-fabricated engineering building materials and steel structures and components thereof falling u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the solar power generation project or facility is based on Compact Linear Fresnel Reflector technology, the solar radiation (sun light) is reflected and focused/concentrated by Linear Fresnel Reflector made up of multiple mirrors mounted on the specially designed steel structure, on to Boiler Tubes located in a Linear Receiver supported on towers above the reflector field. It is his contention that thus, the structures which supports and on which the reflector and receiver are mounted, definitely be called as components of such solar power generation project. He has further submitted that without mounting and supporting the reflector and receiver on the steel structures, the solar power generation project/facility cannot come into existence and would be incomplete. 5. Referring to the meaning of the components mentioned in the Show Cause Notice as well as in the impugned order, the learned Advocate submits that in both these places, the components have been described as a consequential element of a system or part or element of larger whole . He has also submitted that in the report of Indian Technology of solar power generation system, the mounting structures are show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly in the case of Rakhoh Enterprises Vs CCE Pune - 2016 (338) ELT 449 (Tri-LB) , has held that wind mill doors are eligible to the exemption Notification No.6/2006-CE, dt.01.03.2006 which allows exemption to wind operated electricity generator, its components and parts thereof including rotor wind turbine controller etc, observing that the wind mills doors are parts. Similarly, also anchor rings and load spreading plates are held to be parts of wind mill operated electricity generator. 8. Per contra, the learned Authorised Representative for the Revenue Shri Sameer Chitkara, reiterating the order passed by the learned Commissioner submitted that the supporting structures classified under Chapter 73 of Central Excise Tariff Act, 1985, cannot be called as components , hence admissible to the benefit of Notification No.15/2010-CE, dt.27.02.2010 as amended. He submitted that the Adjudicating authority, after considering the clarification issued by the Board dt.06.08.2012 and analyzing the evidences on record, the applicability of case laws to the facts of the present case, observed that the steel structures cannot be treated as components of the reflector system, linear rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r facility; and (2) the manufacturer of such goods furnishes an undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that - (a) the said goods shall be used only in the said project or facility and not for any other use; and (b) in the event of failure to observe conditions above, the manufacturer shall pay the duty which would have been leviable at the time of clearance of goods, but for this exemption. (F.No.334/1/2010-TRU) (Prashant Kumar) Under Secretary to the Government of India Notification No.26/2012-Central Excise: G.S.R. (E). - In exercise of the powers by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.15/2010-Central Excise, dt. 27 th February, 2010, published in the Gazette of India, Extraordinary vide number G.S.R. 117(E), dated the 27 th February, 2010, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration facility issued by various agencies. 13. In the booklet titled as Linear Fresnel Reflector based Solar System Operation Maintenance Manual issued by the Ministry of New Renewable Energy, Government of India, November, 2014 under the subject Operating Principles, the Components are explained as under:- 4.1 Explanation of System Components: The LFR consists of parallel rows of linearly coupled reflector units, single axis tracking system, and linear cavity receiver at appropriate height above the reflectors, to receive solar radiation reflected and subsequently focused by the reflectors. Linear Fresnel Reflector system comprises of the following components:- Reflectors Receiver Tracking System Process and Instrumentation System 4.2 Reflector Main components of reflector are: 1. Mirror: High reflective mirror is used as the reflector. It reflects sun rays to the receiver. 2. Corrugated Sheet: It is a wavy structure made up of GI or any other equivalent metal. Mirror is pasted on this sheet. It gives a good support to the mirror and also protects reflective paint of mirror from corrosion. In the litera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontext of exemption Notification No.77/90-Cus., dt.20.03.1990 as: 12. Part is defined in Black s Law Dictionary Sixth Edition at page 1117 as under :- An integral portion, something essential belonging to a larger whole; that which together with another or others makes up a whole ........ a portion, share or purport . In Chambers 20 th Century Dictionary the meaning given for component is as under:- one of the parts or elements of which anything is made up, or into which it may be resolved . In Oxford Dictionary the meaning of component is :- Contributing the composition of whole In Webster s Dictionary the meaning given is A part; a constituent, an ingredient. In our view, the common parlance meaning of the expression component is also the same, that is, one of the parts or elements of which anything is made up or into which it may be resolved or a constituent. The meaning in common parlance has to be looked into since the notification itself does not contain any definition of the expression. 13. Several decisions of High Courts containing reference to part , component or spares have been placed before us in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicle will keep body of a vehicle in readiness for use in emergency. It was held that every component part need not be a spare part while every spare part will necessarily be a component part. 14. In Paul Lazar v. State of Kerala - 1977(40) STC 437 (Kerala HC) it was held that copper wire used in manufacture of transformers is not a component part thereof. It was indicated that component part has to be an identifiable object and copper wire used in the manufacture of transformer is not an identifiable object. 15. In Ghaziabad Engg. Co. (P) Ltd. v. Commr. of Sales Tax - 1991 (80) STC 243 (Delhi HC) under the provisions of the Bengal Finance (Sales Tax) Act, the court considered entry 1 of first schedule of Bengal Finance (Sales Tax) Act, namely, motor vehicles, including motor vehicles tyres and tubes and spare parts of motor vehicles and held that fuel injection pump, which is a part of diesel engine is a component part of the diesel engine and not a component part of the motor vehicle and, therefore, the fuel injection pump sold as a spare part would not be a spare part of motor vehicle. In Khoday Distilleries (P) Ltd v. Commr. of Commercial Taxes, Karnataka - 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent parts or constituent parts is an example of tautology. Constituent and component essentially mean the same thing, that is, an essential part of which anything is made of or into which it may be resolved. When parts are put together to create an end product, they are regarded as component parts. When an assembled product is dismantled, it gives rise to component parts. Whatever be the stage, that is, before assembling, after assembling and after dismantling, such essential are [integral] part is a component, when a component part is damaged or is worn out and therefore requires replacement and is replaced, the replacing part does not cease to be a component part because it was not present in the initial assembly and had been put in the place of a damaged or worn out component part. The much wider meaning given to the expression component in Khodey Distilleries (P) Ltd. v. Commissioner of Commercial Taxes, Karnataka and Others - 1991 (82) STC 251 (Kar. HC) and in State of Madras v. R.M.K. Krishnaswami Naidu Ors. - 1970 (26) STC 42 (SC) does not affect this position. A spare is a replacement part, to replace a damaged or worn out component; nevertheless it is a compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nery, the same would have to be treated as component parts of that machinery as the description of goods against Sl. No. 91B of Notification No.6/2006-C.E., Sl. No.338 of Notification No.12/2012-C.E. covers all components whether finished or not and raw materials for the manufacture of the items of machinery, prime movers, instruments, apparatus, appliances, control gear, transmission equipments etc. In view of this, the impugned order denying exemption to the goods supplied to Prayagraj Super Thermal Mega Power Project is also not sustainable. 30. Also, we find that recently the Larger Bench of the Tribunal in the case of Rakhoh Enterprises (supra), while considering the eligibility of the items viz. doors of windmills under the exemption under Notification No.6/2006-CE as amended observed that these are parts of Wind Operated Electricity Generator (WOEG) and eligible to the benefit of notification. Similar findings are also recorded in the case of items viz. anchor rings and load spreading plates as parts of the tower specifically designed for wind operated electricity generator and accordingly eligible to Notification No.6/2006-CE, dt.01.03.2006. 31. Therefore, c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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