1994 (9) TMI 171 - AT - Central Excise

Summary

Issues involved:
The judgment involves the dutiability of non-specified parts of motor vehicles under Central Excise rules and the applicability of exemption Notification No. 167/79-C.E. to IC engine parts used in motor vehicles.

Dutiability of non-specified parts:
The Collector of Central Excise, Pune, found that IC engine parts were not eligible for exemption under Notification No. 167/79-C.E. as they were not considered motor vehicle parts. The duty liability was confirmed along with a penalty.

Applicability of Notification No. 167/79-C.E.:
The appellant argued that IC engines with non-specified motor vehicle parts were used as Original Equipment (OE) components in motor vehicles on which appropriate duty was paid. They contended that IC engines were excisable goods and correctly availed exemption under the notification. The appellant also raised the issue of time bar for the demand.

Analysis and Decision:
The Tribunal analyzed the historical context of Tariff entries and the scope of Notification No. 167/79-C.E. which exempted unspecified parts of motor vehicles for further manufacture of excisable goods. IC engines were classified under Item No. 29 of the Tariff and were considered excisable goods. The Tribunal held that IC engines used in motor vehicles were parts of the vehicles, and as all unspecified parts of IC engines were classifiable under Item No. 68, the denial of exemption was deemed improper. Consequently, the impugned order was vacated, and the appeal was accepted.