1997 (4) TMI 180 - AT - Customs

Summary

Issues:
1. Eligibility of water sprinkler for the benefit of Notification No. 123/81, dated 2-6-1981.

Detailed Analysis:

Issue 1: Eligibility of water sprinkler for the benefit of Notification No. 123/81, dated 2-6-1981

The appeal before the Appellate Tribunal CEGAT, New Delhi revolved around the question of whether water sprinklers are eligible for the benefit of Notification No. 123/81, dated 2-6-1981. The appellant contended that the Collector of Central Excise (Appeals) had initially denied the exemption to water sprinklers but later reversed this decision in a subsequent order, which was not challenged by the department. The appellant also cited a previous Tribunal decision regarding high-speed diesel oil to support their argument.

The Departmental Representative for the Revenue argued that the logic applied to diesel oil exemption cannot be directly extended to spares or other items like water sprinklers.

Upon careful consideration, the Tribunal noted the series of decisions cited by the appellant's Counsel and analyzed the matter. The Tribunal observed that the water sprinklers were essential for suppressing dust in a mining area, as detailed in the technical writeup submitted with the appeal. The water sprinklers were used to maintain visibility, protect electronic equipment, and comply with statutory requirements under the Mines Act. The Collector (Appeals) in a subsequent order dated 28-5-1992 had thoroughly analyzed the necessity and purpose of using water sprinklers in the mining area, ultimately concluding that water sprinklers are indeed eligible for the benefit of Notification No. 123/81, dated 2-6-1981.

Based on the analysis and reasoning presented in the Collector (Appeals) order, the Tribunal concurred with the decision that water sprinklers are eligible for the exemption under Notification No. 123/81, dated 2-6-1981. Consequently, the Tribunal allowed the appeal in favor of the appellant, affirming the eligibility of water sprinklers for the mentioned exemption.

In conclusion, the Tribunal upheld the eligibility of water sprinklers for the benefit of Notification No. 123/81, dated 2-6-1981, based on the detailed analysis presented in the Collector (Appeals) order and the specific requirements and purposes served by the water sprinklers in the mining area.