Central Excise - Component of the Solar Power Generation Plant - Appellant is engaged in manufacture of Galvanized TL Tower & Parts, Steel Scrap, Zinc Dross etc. - appellants cleared Galvanised Solar Structures to various solar power generating Companies by claiming exemption under Notification No.15/2010 dated 27.02.2010 as amended vide Notification No.26/2012 dated 08.05.2012 - alleging that the mounting structures cleared by the appellant do not fall under any of the category mentioned in the Notification dated 27.02.2010, show cause notice served upon the appellant demanding the excise duty for incorrect availment of the exemption Notification of 27.02.2010 - Whether the Galvanized Structure cleared by the appellant to solar power generating companies is a product covered under and is entitled to the benefit of exemption Notification No.15/2010-CE dated 27.02.2010 as amended vide Notification No.26/2012 dated 08.05.2012 – HELD - bare perusal of these Notifications clarifies that it exhaustively covers all items which are required for the initial set up of a solar power generation project. The goods manufactured and cleared by appellant is admittedly module mounting structure for solar panels - these structures are meant to hold the power generating solar panels at a particular angle - Since viability of power plant depends upon the power output and the output directly depends on the angle at which the structure holds the panel, hence, these structures are the integral component of the solar power generation plant – in view of dictionary meaning of term 'Component’ and having been certified by the competent authority as essential components required for initial setting up of a solar panel plant, it is held that the solar mounting structures are covered under Notification No.15/2010 dated 27.02.2010 as amended vide Notification No.26/2012 dated 08.05.2012 – impugned order is set aside and appeal is allowed - Imposition of the penalty - penalty has been confirmed under Section11 AC of Central Excise Act, 1944. Penalty under the said section can be levied if and only if there is an intent to evade the payment of duty. In the present case, it is apparent that appellant had intimated the Assistant Commissioner regarding the clearance of impugned excisable goods without payment of duty of the goods being the components required for solar power project eligible for exemption under Notification - The question of evasion of duty does not at all arises that too with the malafide intent - penalty has wrongly been imposed by Commissioner (Appeals) on the appellants, hence the same is set aside

Quick Search


Create Account

Log In

Forgot Password

Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page