2000 (6) TMI 507 - AT - Central Excise

Summary

Issues:
1. Denial of benefit of Notification No. 217/96-C.E. to Steel Balls, Outer Rings & Inner Rings used in the manufacture of ball bearings.
2. Applicability of Notification No. 64/86 to parts of ball bearings.
3. Denial of exemption based on Classification List.

Analysis:

1. The issue revolves around the denial of the benefit of Notification No. 217/96-C.E. to certain components used in the manufacture of ball bearings. The appellants argued that they are entitled to the benefit of Notification No. 64/86 for the parts of ball bearings, citing a Tribunal decision extending exemption to parts of parts used in manufacturing. The adjudicating authority differentiated the case from a previous decision, but the Tribunal found this differentiation to be unfounded, stating that the benefit should extend to parts of ball bearings as well.

2. The Tribunal referred to Circulars issued by the Board, which supported the interpretation that exemption available for a particular notification would also cover the parts of parts exempted under that notification. Relying on the precedent set by the Tribunal in the case of Mahendra Engineering Works, the Tribunal held that the exemption under Notification No. 64/86 should apply to the goods in question used in manufacturing ball bearings.

3. Another ground for denying the benefit of the notification was that it was not claimed in the Classification List. However, the Tribunal agreed with the appellants' contention that the availability of exemption is not solely dependent on being claimed in the Classification List. Citing a previous Tribunal decision, the Tribunal held that exemption benefits should be granted even if not explicitly claimed in the Classification List. Therefore, the appellants' claim to the benefit of Notification No. 64/86 was deemed sustainable, and the appeal was allowed on its merits.

In conclusion, the Tribunal allowed the appeal, finding in favor of the appellants regarding the denial of the benefit of Notification No. 217/96-C.E. to certain components used in manufacturing ball bearings. The Tribunal held that the benefit of Notification No. 64/86 should extend to the parts of ball bearings and that the availability of exemption is not solely dependent on being claimed in the Classification List.