1997 (7) TMI 251 - AT - Central Excise

Summary

Issues:
Applicability of exemption under Notification No. 58/86-C.E., dated 10-2-1986 to Dies for Drawing Metal Strips.

Analysis:
The appeal pertains to M/s. Devidayal Non-Ferrous Industries Pvt. Ltd. challenging the decision of the Asstt. Collector of Central Excise, Division "E", Bombay-I, who held that the Dies used for drawing strips were not covered by Notification No. 58/86-C.E., dated 10-2-1986. The appeal was rejected by the Collector of Central Excise, (Appeals), Bombay, prompting the appellants to seek a decision on merits.

The Notification No. 58/86-C.E., dated 10-2-1986 exempts tools designed for use in hand tools, machine tools, or tools for working in the hand, including dies for wire drawing, extrusion dies for metals, and rock drilling bits under Chapter 82 of the Central Excise Tariff Act, 1985. The exemption applies to tools manufactured in a factory for use in the same factory or any other factory of the same manufacturer, subject to compliance with the prescribed procedure.

It was established that the Dies in question were tools designed to be fitted into machine tools and classified under Chapter Heading No. 82 of the Tariff. The Tribunal emphasized that the term "including" in the exemption notification does not restrict the scope of the exemption to only the items specifically mentioned. Referring to precedent, it was clarified that items listed with the term "including" cover products that may raise doubts about their inclusion, and items not explicitly mentioned but falling within the general category are also covered.

Upon thorough review of the exemption notification, the Tribunal disagreed with the Collector of Central Excise, (Appeals), Bombay, concluding that the Dies for Drawing Strips were indeed eligible for the exemption under Notification No. 58/86-C.E., dated 10-2-1986. Consequently, the appeal was allowed, and the decision was made in favor of M/s. Devidayal Non-Ferrous Industries Pvt. Ltd.