9911796707
TMI Blog2011 (3) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... lectricity generator is made to run for the generation of electricity by harnessing wind power. 2. The applicant has sought a ruling on the eligibility of the transformers for exemption from Central Excise duty in terms of Notification No. 6/2006-Central Excise dated 1st March, 2006. The application has been allowed under Section 23 D (2) of the Central Excise Act, 1944 and the question raised by the applicant has been recast as follows: "Whether specially designed transformers for wind operated electricity generators E-53/E-48 (800 KW), of the specifications as given in the application, sought to be manufactured by the applicant will be eligible for exemption from the levy of central excise duty by virtue of the entry at Serial No. 84 [Item No. 13 of List 5] in the Table of the Notification No. 6/2006-Central Excise, dated 1.3.2006 as amended" 3. As per the said Notification 6/2006-Central Excise, goods specified in the Table read with relevant List appended thereto, are exempted from the levy of Central Excise duty specified thereon under the First Schedule to the Central Excise Tariff Act, 1985 subject to the conditions specified in the annexure to the No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic loads and the electrical stresses that the system is subjected to. Its specially designed sensing system interfaces and integrates with turbine mean control system to deliver stable power of prescribed specifications. The absence of such a transformer would lead to disablement of Wind Operated Electricity Generators and it has been urged before us that for these reasons, it is an essential part of WOEG entitled to the benefit of exemption in terms of Notification 6/2006-Central Excise. The applicant has also quoted the decision of the Tribunal in the case of Hyundai Unitech Electrical Transmission Ltd. vs Commissioner of Central Excise, Nagpur [2005(187) ELT 312(Tri-Mumbai)] to point out that even parts of tower and lattice masts have been held to be parts of Wind Operated Electricity Generators. 6. The applicant has emphasized the fact that entry against Serial No. 84 of the Table in the Notification 6/2006 covers non conventional energy devices/systems falling under any chapter of the tariff. Thus it is claimed that there is no restriction placed to the items/goods falling under any specific chapter or heading or sub heading of tariff item. The applicant has also cited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 9. During the course of arguments also the Departmental Representative observed that to be eligible for exemption the transformer has to be demonstrated to be a component or a part of the Wind Operated Electricity Generator; it is not sufficient that the transformer is specially designed for WOEG. The transformers have been designed only to integrate the Wind Operated Electricity Generator with the power grid. The transformer is specially designed to the extent that it is compatible with the functioning of Wind Operated Electricity Generators. The words "parts" and "components" imply something that which along with others make up a whole, one of the elements of which anything is made up. The transformer proposed to be manufactured by the applicant and for which a ruling has been sought does not fit in the definition of parts or components of WOEG. The Department has also cited a number of decisions of Supreme Court to emphasize that the burden of proof lies on the claimant claiming the benefit of exemption notification. It has been further pointed out that exemption notifications are to be construed strictly and if intention of legislature is clear and unambiguous, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (12) Solar crop drier and system (13) Wind operated electricity generator, its components and parts thereof including rotor and wind turbine controller (14) Water pumping wind mill, wind aero-generator and battery charger (15) Bio-gas plant and bio-gas engine (16) Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion device producing energy (17) Equipment for utilising ocean waves energy (18) Solar lantern (19) Ocean thermal energy conversion system (20) Solar photovoltaic cell (21) Parts consumed within the factory of production of such parts for the manufacture of goods specified at S. Nos. 1 to 20 above. It may be noticed that while some entries in List 5 above refer to individual items or devices, some other entries include systems as a whole or a combination of an equipment and the corresponding system. Flat Plate solar collector at Serial No.(1), Solar Cooker at Serial No. (4) and Solar Lantern at Serial No. (18) are some of the examples of individual items of equipment covered by the entries in the List. On the other hand solar air heating system at Serial No.( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipment" to be eligible for exemption. It was observed by the Hon‟ble Supreme Court that apart from other entries, the exemption notification included several categories of goods such as :- "16. All types of material transporting equipments, including ........." "18. All types of material handling equipments, including .......". "44. Special maintenance systems, including hydrojetting tools, pneumatic torque wrenches; EOT / mobile cranes ..." It was in this background of overlapping and all inclusive entries that the Honble Court observed that the notification must be interpreted in a broad manner and the purpose for which the exemption was granted must be considered in its entirety. It further, observed "the terminology used in the notification would have an important role to play where the exemption notification ex facie applies, there is no reason why the purport thereof would be limited by giving a strict construction thereto." We certainly agree that in case of any doubt or ambiguity in the Legislation, the objectives for which the law was enacted do need to be taken into consideration for interpreting the law. However, in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fan. Electrical parts which may be inter-connected by wires and cables can be treated as parts of the system provided, these are essential for the working of the system. In a geographical area where Cable Access System (CAS) has been made mandatory by the Government, a Set Top Box working in conjunction with a television cannot be said to be a part of the television. The set top box is essential for receiving signals on the television but it does not become a part of the television. It is a part of the "reception apparatus for television." If however, the television has an inbuilt set top box it would no doubt be construed as a part of a television. 15. In the case of the specially designed transformer for the wind operated electricity generator, it is noticed that it is no doubt an essential part without which the generating system would not function. But the transformer is not a part of the generator. The transformer is being deployed as an item of a system which works in conjunction with the generator, wind turbine controller, rotor etc., to provide stable electricity to the power grid. In Electrical Engineering Terminology electric motors, electric generators, electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecifications. Here in the inverter system, voltage, frequency and power are converted accordingly. Via the transformer, inverter voltage (400 V) is stepped up to the appropriate medium voltage required by the grid or the wind farm network. The chapter also provides a sketch indicating how the rotor, generator inverter etc., are linked. The following components have been specified under the annular generator and grid management system, namely:- 1. Annular Generator 2. Rectifier 3. D.C.Link 4. Invertor 5. Grid Management Control System 6. Transformer 7. Filter 8. Internal Transformer Station It may be noticed from the aforesaid write-up at the collaborators website that the transformer is a separate item of electrical machinery and is not a part of the generator. It would appropriately merit to be classified as a part of the grid management system of a wind energy convertor. We are therefore unable to agree that the specially designed transformer is a part of wind operated electricity generator. 16. It is further noticed that the entry at Serial No.13 of List 5 in the notification No. 6/2006-CE a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
