TMI Blog2005 (7) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... find the 'flanges' to be a part of WOEG. Classification declarations were filed by the appellant the goods M.S. Forged Flanges (Machined) with the exemption claim under Sr. No. 251 last 5 Remark column having an Entry 'Wind Mills' spares parts (for wind operated electricity generators). We find when the Board has cast an obligation on the department vide Circular No. 124/35/95-CX. to scrutinize the declaration, therefore the finding on suppression as arrived by the Ld. Adjudicator is this order, para 10, of deliberate omission of Sr. No. to involve the Proviso clause lift the bar of limitation cannot be upheld. As the order does not indicate any other objection of the verification if any, done by the officers. Since the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof . The flanges so cleared, as it appears from the show cause notice para 2, which reads as - 2. Investigations in the matter revealed that these flanges were used by the customers in the erection of the towers/structures of the wind mills or the wind operated electric generators and not claimed by the assessee in the manufacture of wind operated electric generators as its spares or components which are exempted from payment of duty by virtue of Notification No. 6/2000 dtd. 1-3-2000 as amended. Purchase orders of the Customers also clearly mentioned for supply of M.S. forged flanges for windmill towers....... would indicated that it was the admitted position that the flanges were for supply to and used in the erection of Wind Mill To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plete WOEG having been imported without tower and foundation. The said finding has been elaborated as follows : Since manufacture of WOEG will not be complete without placing the wind turbine consisting of nacelle, rotor, hub and blades and controller and communication (the imported goods) on a tower erected on a foundation, the goods cannot be themselves be deemed to have constituted - minus tower and foundation - a complete WOEG. However, the question here is that MS flanges are parts of the tower, which in turn is part of the WOEG. In this connection, I am reproducing Sl. No. 20 of the List 5 to be read with Sl. No. 251 of the Table in Notification No. 6/2000-C.E. dtd. 1-3-2000. (20) Parts consumed within the factory of production of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 therein, the relevant Sl. No. in List 5 has deliberately been left out in an attempt to convey the impression that the products manufactured by them are parts and spares of the windmill itself. Since the Sl. No. applicable to the company s product is Sl. No. 20 of List 5 which contains clear specifications to the effect that exemption would be available only if the same i.e. MS flanges is captivity consumed in the manufacture of tower, the company s failure to mention the correct Sl. No. of List 5 in their classification declarations, excise invoices, monthly RT 12 returns amounts to suppression of facts. Hence I hold that proviso to Section 11A of the Central Excise Act, 1944 has correctly been invoked and confirmed the duty demands and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tower came into existence. The concept of interpretation of consumed in factory of production limiting the same to the Central Excise registered premises of the appellants herein deprive the use at site cannot be upheld. 2.3 In any case, the flange being part of tower which is Essential Component of Wind Operated Electrical Generator, an unconventional energy service device, would be eligible under Sr. No. 5 if not under 20 as part of Sr. No. 1 to 19. Coverage is also to be available under Sr. No. 13 of list 5. 2.4 The reliance placed on the decision of Damodar I. Malpani - 2002 (146) E.L.T. 483 (S.C.) submission of invoices of other manufacturer having been exempted, is well founded. That would induce us to uphold the exempted status to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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