1984 (1) TMI 312 - AT - Central Excise

Summary

Issues: Classification of fabricated radiator parts for motor vehicles under Central Excise and Salt Act, applicability of exemption notifications, job work basis manufacturing, and eligibility for duty exemption.

In the case before the Appellate Tribunal CEGAT NEW DELHI, the appellants, a company fabricating parts of radiators for motor vehicles, filed an appeal against the order of the Appellate Collector of Central Excise, Madras. The Appellate Collector had rejected the appeal, stating that the fabricated parts were considered "goods" and not a part of a motor vehicle. The appellants argued that the parts they manufactured were not in a fully manufactured condition, had no commercial name, and could not be marketed as such, thus not falling under the definition of "goods" under Section 2(f) of the Central Excises and Salt Act. They also claimed exemption from Central Excise duty under Notification No. 99/71 for parts and accessories of motor vehicles. Additionally, they referred to Notification No. 119/75, stating that goods manufactured on a job work basis would be liable to pay duty on job work charges, which they argued did not apply to their fabricated radiator parts. The Departmental Representative contended that the fabricated parts were semi-finished component parts of a radiator falling under Item 68 of the Tariff, making them ineligible for the duty exemption under Notification No. 99/71. The Tribunal held that the fabrication process undertaken by the appellants did not result in an identifiable or distinct manufactured product or goods. Even if the process produced radiator parts, they would be eligible for exemption under Notification No. 99/71 as part of a radiator. Therefore, the appeal was allowed in favor of the appellants.