TMI Blog2002 (7) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... to the exemption. He has noted as parts of windmill, they are to be classified under heading under which the windmill falls in terms of Section note 2(a) of Section XVI of CETA 85 and hence he has accepted the assessee s claim for the benefit of notification which is appealed against in this appeal by Revenue. 2. It is stated in the appeal that the product Transformer is not a part of the mill. It is also not a specially designed device which run on windmill. The said product is a device which steps up or steps down the voltage in any electrical circuit and it as such does not run as windmill. It has got a separate and independent function and thus it entails to be classified under the specific Heading 85.04 but it cannot be classified as part of windmill. It is stated that Serial No. 12 of Notification No. 205/88 can be extended only as per the classification under the tariff and as parts of windmill comes under the purview of Chapter Heading 8412.90, and transformer comes under Chapter 8504, therefore the benefit of Serial No. 12 of the said notification cannot be extended. 3. We have heard Ld. DR Shri A. Jayachandran for revenue and Ld. Consultant, Shri R. Parthasarathy fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee in their letter dated 18-12-96 which are extracted herein below :- The transformers that they have designed is specially meant for windmill application and they are different from the other transformers in their design and application. Windmill is a massive structure and the windmill fan has to be activated before it starts functioning with the help of natural wind. The transformer we supply draw's power from TNEB supply and activates the generator which in turn rotates the fan. In that process the transformer performs the function of a step-down transformer. Once the windmill starts and reaches the required speed, wind energy which is converted into electrical energy with the help of generator is transferred to the transformer which converts the electricity to the higher voltage, and feeds the electricity generated to the EB grid. Here the transformer acts as a step-up transformer. This type of dual function cannot be performed by other transformers. Also, in view of Section Note 2(a) of Section XVI, the transformers in question have to be construed as a part of windmill, and hence eligible for exemption under Sl. No. 12 of Notification 57/95-C.E., dated 16-3-95. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the Commissioner in his impugned order that the control panels cannot be used separately and are meant specifically for windmill. He has also noted that the Notification No. 205/88-C.E., dt. 25-5-88 as amended by notification 57/95 dt. 16-3-95 is an exemption to grant benefit to windmills and any specific devices, which run on windmill He has relied on the certificate issued by the Electrical Inspectorate of Government of Tamilnadu, confirming that the control panel is apart of the windmill. He has also noted that Notes 2(a) of Section XVI of the Central Excise Tariff Act, 1985, lays down that parts of items specified under this section would be covered under that specific heading. The Revenue has not taken any grounds on these findings. Therefore, Commissioner s finding that the control panels are specifically designed for use in the wind mill has not been controverted. We notice that in the case of Laxmi Boilers v. Commissioner of C. Ex. Customs, Mumbai-II, 2001 (138) E.L.T. 1189 (Tri. - Mumbai), in Para 5 held with regard to the use of conveyors and control panels which were consumed within the factory of production in the construction of boilers to be entitled to the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, the notification does not restrict but the preamble states that the Central Government hereby exempts goods of the description specified in column (2) of the Table hereto annexed and falling within the Schedule to the Central Excise Tariff Act, 1985 from the whole of the duty of excise leviable thereon which is specified in the said Schedule. The serial number 12 only lays down the description of the goods Windmills and any specially designed devices which run on windmills. There is no restriction to any tariff heading therein. It cannot be presumed that only those items which come within the ambit of this serial number any specific Schedule any chapter heading alone could be entitled and not those which are used as parts of windmills or specially designed devices which run on windmills. Assessee had produced evidence to show that this transformer is specific transformer manufactured and only run on windmills and respectfully following the ratio of this Bench decision rendered on 29-5-2002 in the case of CCE v. Megatech Control Pvt. Ltd. in E/442 to 446/1998, the Revenue appeal is rejected. Sd/-(S.L. Peeran)Member (J) 10. [Contra per : Jeet Ram Kait, Member (J), (Oral)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess sets instrument, Toy, etc., to a large types enclosed in oil tanks or equipped with radiators, fans, etc., for cooling purpose. The large types are used in electricity stations, for interconnecting mains, distributing stations or sub-stations. The frequency may vary from mains frequencies up to very higher radio frequencies. They are covered by the heading Electrical Transformers appearing in page 1448 of HSN which is reproduced below : (I) ELECTRICAL TRANSFORMERS Electrical transformers are apparatus which, without having any moving parts, transform, by means of induction and using a preset or adjustable system, an alternating current into another alternating current of different voltage, impedance, etc. These usually consist of two or more coils of insulated wire wound on laminated iron cores, although in some cases (e.g., radio-frequency transformers) there may be no magnetic core, or the core may be of agglomerated iron dust, ferrite, etc. An AC in one coil (the primary circuit) induces an AC usually at different values of current and voltage in the others (the secondary circuit). In certain cases (auto transformers) there is only a single coil, part of the winding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endment to the other notification, the parts were also added with effect from 1-3-95. In other words only windmill and any specially designed device which run on windmill and parts of windmill are exempted from payment of duty. Further, in that case, the appellants, obtained certificate from the Electrical Inspectorate of Government of Tamil Nadu, and this certificate had confirmed that Control Panel is part of windmill. In the present case, no such certificate from the Electrical Inspectorate of Govt. of Tamil Nadu in respect of the transformer which is claimed to be specially designed device for the windmill, has been produced before us by the appellant. Their appeals came up for consideration on 29-5-2002. The very same day the present appeal also came up for consideration. The question which arose for consideration in the appeals of CCE v. M/s Megatech Control Panel Pvt. Ltd. was as to whether Control Panels, programmable logic control systems and automation systems used specifically as parts of wind operated electricity generator was eligible for the exemption under Notification No. 205/88-C.E., dated 25-5-88 as amended in terms of Sl. No. 12 of the said notification. Transfor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the impugned order is set aside and the appeal filed by the Revenue is allowed. Sd/-(Jeet Ram Kait)Member (J) POINTS OF DIFFERENCE 15. In view of difference of opinion between the Members, the following question is referred to Third Member for answering the same :- Whether the Revenue appeal is required to be rejected by holding that assessee is entitled to the benefit of Sl. No.12 of the notification in question in respect of transformers which are exclusive for use in the windmill as held by Member (Judicial) in his order. OR Revenue appeal is required to be allowed by holding that benefit of Sl. No.12 of the notification in question cannot be extended to Transformers used in the windmill as held by Member (Technical) in his order. Sd/-(Jeet Ram Kait)Member (T) Sd/-(S.L. Peeran)Member (J) 16. [Per : C.N.B. Nair, Member (T)] - The limited question for consideration is whether the transformer in question is eligible for exemption under Sl. No. 12 of Notification No. 205/88 as amended from time to time. The entry read as under during the relevant period : Windmills parts of windmills and any specially designed device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerated to the EB grid. Here the transformer acts as a step-up transformer. However, it is seen on a perusal of the appellant s aforesaid reply that the claim had been founded both on the basis that the transformer is a part of windmill as well as a device specially designed to run on windmill. 18. Be that as it may, it is clear that the appellants claim that these transformers are specially designed for exclusive use in windmills is not disputed. The transformer is a dual function equipment, stepping down the voltage of electric supply from the general grid so as to make it suitable for supply to the windmill for starting it, and, when electricity is generated by the windmill, stepping up the voltage and feeding it to the general grid. This is because windmill generates electricity at a voltage of 440 volts as against the general supply in the grid at 11 KV. It would appear that the impugned order of the Commissioner also has dealt with the transformer both as a part of wind mill and a special device which runs on a windmill and has held that the item is entitled to exemption. 19. The contention of the Revenue is that the transformer in question is a separate item from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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