TMI Blog1998 (3) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ds were exempt on import and it appeared to the Custom house that the Appellants had declared power cables, earthing cables, farm computers, modems, remote, computer programming software as parts of Turbine Controller and claimed that they are covered by Serial No. 3(d) of the Notification 64/94. The components of brake hydraulics were not separately mentioned in Bill of Entry but were declared as brake hydraulics. The oil and grease are claimed against Serial No. 2 of Notification i.e. for maintenance of WOEG. The custom house was of the view that these items are not covered under the Notification. Proceedings were initiated against the Appellants by issue of show-cause notice charging them with mis-declaration of the goods and for confiscating the goods under Section 111(m) of the Customs Act, 1962 and proposing to impose penalty on the Appellants under Section 112 of the Customs Act, 1962. The goods, however had been earlier released provisionally. The show-cause notice was for demanding duty of Rs. 1,03,81,769/- which amount had been provisionally collected while releasing the goods. After considering the reply to the show cause notice the Commissioner of Customs-II, Mumbai pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es real time data concerning voltage, power etc. and commence operation of individual Turbine and sends alarm to a permanent watch service and these computers are required for centralised monitoring system and are directly connected to the wind turbine controller of each WOEG. They monitor the performance of individual Wind Turbine Controllers. The learned Counsel further referred to a certificate by the foreign suppliers of the wind mill where they have stated that the farm computer is a component of the Wind Turbine Controller. 4. The next item, of which the learned Counsel put forth argument is brakes hydraulics. It was submitted that these had been imported consisting of 27 sets which were allowed clearance under part Bill of Entry duty free under Notification 64/94. However, while allowing the clearance of part Bill of Entry some parts of brake hydraulics were not allowed to be cleared. But since there is no charge mis-declaration on the part of the Appellant and as they have imported 27 sets of brake hydraulics, these components are also part of the 27 sets as could be seen from the invoice and packing list. The learned Counsel pleaded, therefore the components of brake hyd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Operated Electricity Generators namely : (a) Brake calipers (b) Special bearings (c) Brake hydraulics (d) Wind turbine controller and parts thereof (e) Gear box and parts thereof (f) Hubs (g) Flexible coupling (h) Yaw component (i) Sensors (j) Blades. 8. In regard to the power cables and earthing cables, the Commissioner of Customs has held that power cables are connecting generator to the power box acting as an conducting medium for power generator and the predominant function being transport of power generated from the generator to the power box, these cables cannot be called as part of Wind Turbine Controller. He has also considered in this context the explanatory notes and the customs tariff regarding the classification of the cables and found that cables even with end fittings as in this case are not taken to be classified as parts of items covered under Chapter 84 and 85 of the Customs Tariff. The Commissioner held that in view of the Section Note 2 of Section XVI of the Customs Tariff Act, cables with end fittings are classifiable as articles of Headings 85.44 and they are not to classified as part of any goods of any of the headings of Chapter 84 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 92.04, hence 35/79 cannot be extended, and the department there also relied upon Chapter Note 2 to Section XVI of CTA. The Supreme Court, however held that to get the benefit of Notification 35/79 it is not necessary that pressure gauges should be assessable under Heading 85.04/05. All that is needed is that it should be a part of an article falling inter alia Heading 84.04/05, and that the section notes, the Supreme Court held did not advance the case of the department. In this view of the matter, and having regard to the certificate referred to supra from Brussels, it is to be held that the power cables are eligible for exemption under Notification 64/94. 9. As regards the earthing cables it is merely a protective device and the related drawings shows that it is connecting the earthing rail of the wind mill to the earth. No evidence has been produced to show that these cables are specially designed for the unit imported. Therefore, in regard to the earthing cables we see no reason to interfere with the impugned order, that they are not eligible for the exemption as it is also not specifically included among protection devices in the Brussels Certificate. 10. As regards ..... X X X X Extracts X X X X X X X X Extracts X X X X
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