Central Excise - Duty liability on component parts/sub-assemblies used in the manufacture of diesel operated Internal Combustion Engines under Notification No. 217/85-C.E., dated 8-10-1985 as amended Notification No. 217/85-C.E. - Central Excise - 14/88

Central Excise - Duty liability on component parts/sub-assemblies used in the manufacture of diesel operated Internal Combustion Engines under Notification No. 217/85-C.E., dated 8-10-1985 as amended Notification No. 217/85-C.E. Circular No. 14/88 Dated 26-5-1988 [From F. No. 156/26/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Duty liability on component parts/sub-assemblies used in the manufacture of diesel operated Internal Combustion Engines under Notification No. 217/85-C.E., dated 8-10-1985 as amended. Attention is invited to the notification No. 217/85-C.E., dated 8-10-1985 as amended which exempts from the whole of the duty of excise certain component parts like injection pumps, filters etc. of Diesel Oil operated Internal Combustion Engines if they are intended for use in the manufacture of diesel oil operated Internal Combustion Engines. In this context, doubt has arisen as to whether the exemption in terms of Notification 217/85-C.E., dated 8-10-1985 would also be available in respect of parts that are used in the manufacture of the sub-assemblies/component parts which ultimately go into the manufacture of diesel oil operated Internal Combustion Engines. 2. Earlier Board had an occasion to examine a similar issue regarding the scope of Notification No. 239/86-C.E., dated 3-4-1986 which exempts auto electrical components like starter-motor, dynamos etc. if used in the manufacture of tractors of power take off Horse Power not exceeding 25. In that case it was viewed by the Board that the sub-assemblies which go into the manufacture of auto electrical components would also be entitled to exemption in terms of Notification 239/86-C.E., dated 3-4-1986. 3. The issue has since been examined in the Board. In the light of the decision taken already with respect to Notification 239/86, dated 3-4-1986, the Board is of the view that the parts which go into the manufacture of component parts that are in turn used in the manufacture of diesel oil operated Internal Combustion Engines would also be entitled to exemption in terms of Notification 217/85-C.E., dated 8-10-1985 subject to observance of other conditions. 4. Trade interests may also be informed suitably.