The main legal point established in the judgment is that the imported goods were used for the specified purpose in the manufacture of Wind Operated Electricity Generators at the customer's site, as per the contract terms, and that the petitioner had not violated the condition of 'use of the goods for specific purpose' under the customs duty exemption notification.

JUDGMENT

(Prayer: Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorari, to call for the records in C.No.VIII/10/78/2018-Adjn in Order in Original No.14/2018, dated 19.12.2018, passed by the respondent and quash the same as arbitrary and illegal.)

1. This Writ Petition is filed seeking to quash the order dated 19.12.2018, passed by the respondent in C.No.VIII/10/78/2018-Adjn in Order in Original No.14/2018.

2. The petitioner is engaged in the manufacture, erection, installation and commissioning of Wind Operated Electricity Generators [WOEG], commonly known as Windmills. For setting up a Windmill, expertise in installation and commissioning of the Windmills at the site is required. Originally, the petitioner's Company carried on business in the name and style of ''Accoina Windpower India Private Limited'' and later, changed its name to ''Nordex India Private Limited'' with effect from 26.09.2018.

3. The petitioner imported various materials and parts of Windmills through Tuticorin Port, for manufacture, erection and installation of the Wind Operated Electricity Generators in the specified site of the customers. While some of the parts are manufactured by the petitioner in the factory, certain other parts such as Rotor Blades, Tower and Transformer are imported and sent to the site directly where the Windmills are to be installed. Thereafter, the final product namely, Windmill would come into existence at the site.

4. During the year 2016, one Sun Photo Voltaic Energy Private Limited, Bangalore, placed a Turnkey contract on the petitioner, whereby the petitioner was required to set up 26 Windmills in Bannur Wind Project in Karnataka. The contract involved supply, erection, installation and commissioning of Wind Turbines at the site. The said Sun Photo Voltaic Energy Private Limited awarded two contracts to the petitioner, one for supply of all equipments and the second one for erection, installation and commissioning services.

5. The petitioner imported 78 Nos. of Rotor Blades from China for manufacture and installation of 26 Windmills. The said imported Rotor Blades were directly moved from the Tuticorin Port to the site in Karnataka, where they are to be installed. This is for the reason that Rotor Blades are huge and require specialized transportation and it would be extremely uneconomical and unviable to transport the said Rotor Blades to the factory of the petitioner and thereafter, transport the same once again to the site. Further, there is possibility for the blades getting damaged. The transportation itself can be done only after getting approvals. Hence, it would not be possible for the petitioner to transport the said blades from the Port to its factory and thereafter to the site. The Rotor Blades needs no further customization in the petitioner's factory.

6. The Government of India to encourage clean energy, granted exemption of customs duty and excise duty for all the parts and components required for Windmills. Thus, the petitioner imported Rotor Blades and availed the exemption of basic customs duty under Serial No.362(3) of Notification No.12/2012 – Cus, dated 17.03.2012 and exemption of special additional duty under Notification No.21/2012 – Cus, dated 17.03.2012. One of the conditions for exemption is that the goods imported should be used in the manufacture of Wind Operated Electricity Generators. Further, the importer should obtain a certificate from the Ministry of New and Renewable Energy, Government of India, for the import of parts and components required for the Windmill.

7. As per the contract entered with Sun Photo Voltaic Private Limited, the petitioner imported 78 Nos. of Rotor Blades under three bills of entry, dated 22.08.2016, 27.08.2016 and 23.01.2017, for a total value of Rs.73,14,99,817/- and the duty payable is worked out to Rs.3,01,37,791/-. Serial No.362 of Notification No.12/2012 – Cus, dated 17.03.2012, provides for concessional rate of basic c