COMMISSIONER OF CENTRAL EXCISE Vs. METRO APPLIANCES LTD.

JUDGEMENT

(1.) Heard Sri Prateek Dawar, learned counsel for Revenue and Sri Manu Ghildyal, learned counsel for assessee.

(2.) Following four questions of law have been referred by Tribunal for opinion to this Court pursuant to order dated 8-11-2004 passed in Central Excise Reference Application No. 24 of 2001 :-

(3.) Learned counsel for Revenue did not dispute that once an item is dismantled and converted into different parts, scraped separately, then identity of dismantled item disappear. It then cannot be identified independently as fan. In the present case it is not disputed that defective fans were received for the purpose of service or repair. They were dismantled and parts were kept in heap. Dismantled parts independently cannot be identified as fan. Hence question - 1 is answered in favour of assessee and against Revenue.