We are supplying goods such as LED Lights/ Fluorescent Lights to the Wind Electric Generator Manufacturer for their Tower and Nacelle under previous Notification no 6/2006 and current Notification no. 12/2012 ( Sr.No.327 & 332, List 8 , Point no. 13 & 21, ) was a part of Wind Mill.
We are not taking Cenvat Credit on Input and also not charging Excise Duty while supplying to the customer under these notification. Our Customer has issued us End User Certificates for the goods under exemptions.
Now We have received notice from Excise Department that we shall take the Cenvat Credit on Inputs Goods and We should Charge E.D. to the Wind Electric Generator Manufacturer as these components are not the part of Wind Electric Generator.
Wind Mill will be manufactured by using so many components. These components can be used for another products. For example an Aluminum Door used for Wind Mill Tower could be used for the Office Cabin also as door. But when it fits to the Wind Mill Tower, a Tower is a part of Wind Mill Nacelle ( where actual generator is fitted) it becomes a part of windmill. This door is for Safety and entrance in the wind mill. Similarly our Lights are fitted in the Tower, Nacelle for human safety during maintenance and operation. Without lighting not a single wind mill will be installed. So it becomes a part of Wind mill.
What shall be done in this case? Whether we are right or Excise Department is right?
Waiting for clarification.
As per the Notification no. 12/2012 Sr.No.327 & 332, List 8 , Point no. 13 & 21, we had supplied the goods to the WEG manufacturer (our Customer).
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As per Sr. No. 327 of the Notification no. 12/2012 CE dated 17-3-2012, only the goods filling under chapter no. 32, 38, 39, 44 or 70 are eligible for exemption in respect of Goods specified in List 9, for the manufacture of rotor blades for wind operated electricity generators.
Whereas as per Sr. no. 332 of Notification no. 12/2012 CE dated 17-3-2012, goods falling under any chapter will be eligible for exemption in respect of Non-conventional energy devices or systems specified in List 8.
Therefore a close scrutiny is required to be done to see whether you satisfy the conditions and items (goods) as per the notifications.
In the Notification no. 12/2012 Sr.No.332 List 8 Point No.13 & 21 it is seems to be partially yes and partially not. Means not clear. Our Lighting products are used for Wind Mill Tower & Nacelle & its control panels for Safety and maintainance. Without these lights the wind turbine is not complete. As per the Notification no. 12/2012, List 8 Point No.13 -Wind operated electricity generator, its components and parts thereof including rotor and wind turbine
controller, Its Component may cover the lightnings also.
Am I right ? or Wrong?
Waiting for your expertise comments
Thanks & RegardsJAY LAGAD
You are correct that wind Operated Electricity Generators its components and parts thereof are exempted from Central Excise Duty Vide Notification no. 12/2012. The description indicated that WOEG its components and parts thereof are exempted. That means that the components specifically meant/manufactured for WOEG and parts meant/manufactured for components of WOEG are exempted. The LED/Flourescent Light are the parts in general nature and they are not specifically meant/manufactured as as component of WOEG or parts of Components of WOEG, they are not covered under Notification no. 12/2012
Any component of WOEG, specially manufactured as per the design of WOEG manufacturer, are exempted. Similarly any parts manufactured as per the design of component of WOEG are exempted.
Certificate issued by the Customer is not relevant for the purpose of claiming exemption.
The correct Sr. No.is 332 (List 8 Sr.No.13).
Stand taken by the Dept. arrears to be correct.