SEAHORSE INDUSTRIES LTD AND ANR. Vs. CCE

JUDGEMENT

(1.) THE issue raised in these appeals are common i.e., the eligibility of certain items for exemption under Notification No. 164/87 -CE dated 10.6.1987. The items in question are:

(2.) THE contention of the Ld. Counsel for the appellant's is that, it is well settled that items for sole use in a particular machine should be classified as parts of that machine, while items of general use should be classified under their respective tariff. The Ld. Counsel in this context has taken us to the decision of the Apex Court in the case of G.S. Auto International Ltd. v. Collector of Central Excise Chandigarh and Elgi Equipments v. Collector of Central Excise 2002 (51) R.L.T. 382 : 2002 (104) ECR 312 (SC). The Counsel has also taken us to the decision of the Commissioner of Central Excise (Appeals) Trichy dated 26.5.2003 in the appellant's own case as well as the Circular No. 341// -CX dated 7.10.1997.

(3.) WE have perused the records and considered the submissions made by both sides. It is noticed that the exemption under Notification No. 164/87 is in respect of "parts of Main Battle Tanks falling within Chapters 45, 48, 68, 73, 85 or 87 of the Schedule to the Central Excise Tariff, 1985." A perusal of these Chapter headings shows that the exemption is in respect of a wide range of goods. For example, Chapter Heading No. 45 related to "Cork and articles of cork." Similarly, Chapter Heading No. 48 is in respect of "Paper and paperboard; articles of paper pulp, of paper or of paperboard", while Chapter Heading No. 68 is in respect of "Articles of stone, plaster, cement, asbestos, mica or similar material." Chapter Heading No. 73 is in respect of "Articles of iron or steel" and Chapter Heading No. 85 is in respect of "Electrical machinery and equipment and parts thereof." It is clear from the wide variety of goods covered by these Chapter Heading that the exemption has a wide sweep and is not restricted as contended by the Revenue. When viewed from this angle, it is clear that the Notification treat items that are otherwise classifiable various headings "as parts of" Main Battle Tanks and give them the exemption.