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2014 (9) TMI 688 - KARNATAKA HIGH COURTClassification of goods - Classification of transformers - On the facts and in the circumstances of the case, and in law whether the Tribunal is right in holding that the levy of tax at 4% is correct in respect of sale of transformers used in construction of Mini Hydel Project fall under Sl. No.80 of III Schedule of KVAT Act 2003 (renewable energy devices) - Held that:- assessee is in the business of manufacturing goods for erection, testing and commissioning of equipments for power transmission lines, power house, etc. In pursuant to the contract entered by the assessee with Atria Brindavan Private Limited, it supplies iron and steel structures, transformers, distribution boxes, etc. and the renewable energy device is erected using the materials supplied by the assessee. One such material goods supplied is transformer. The transformer is a part of renewable energy device. The said transformer is manufactured keeping in mind the need of the clients. In other words, it is clients’ specific. It is not available in the open market. This renewable energy device is erected to run the hydel project whereby using water electricity energy. The energy is produced. The Karnataka Renewable Energy Development Limited, a Government of Karnataka Enterprise, which is expert body dealing with renewable energy device has also opined that the electro mechanical equipments like turbines, generators, gear boxes, cables, control panel, transformers, switch gear and hydro mechanical gates are renewable energy devices. Tribunal was justified in holding that the transformers supplied by the assessee along with other machinery for setting up a hydel project constitute a part of a renewable energy device and it falls within Entry 80 of III Schedule and therefore, the order passed by the Tribunal cannot be found fault with - Decided against Revenue.
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