DIESEL LOCOMOTIVE WORKS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellants filed this appeal against the order -in -appeal dated 31 -12 -1996 passed by the Commissioner of Central Excise (Appeals).

(2.) IN the impugned order, the benefit of Notification No. 88/93 -C.E., dated 4 -5 -1993 was denied to the appellants.

(3.) LD . Counsel, appearing on behalf of the appellants, submits that I.C. engines was a part of diesel locomotives and under Notification No. 88/93 C.E., there is no restricti on with regard to heading in which the part should have been classifiable for being eligible for the benefit of notification. He submits that there is no dispute that the diesel locomotives are classifiable under Heading 8602 of the Central Excise Tariff. He submits that the benefit of notification is being denied only on the ground that I.C. engines are classifiable under Heading 8408 of the Central Excise Tariff. He submits that the Ministry of Finance vide Circular No. 512/8/2000 -CX., dated 10 -2 -2000 clarified that in view of the specific provisions of subsequent notifications, the goods falling under chapter other than 86, but being part of the goods falling under Heading 86.01 to 86.06 will be covered by these notifications subject to fulfilment of other conditions prescribed in the said notifications. For example, IC engines may be classifiable under Chapter 84 and 85 respectively but when these are used as part of diesel locomotives, falling under Heading 86.02, these will be covered by notification.