9911796707
TMI Blog1994 (3) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... ation list No. H/2/91-92 effective from 25-7-1991 in respect of the subject parts seeking assessment thereof at Nil rate of duty in terms of Notification No. 239/86, dated 3-4-1986, as amended by Notification No. 94/87 dated 17/3/1987, which was approved by the jurisdictional Assistant Collector on 31-7-1991. 1.3 The appellants were supplying the assemblies in question, intended for use in the manufacture of Tractors of engine capacity not exceeding 1800 CC manufactured by HMT, Pinjore by availing the exemption under Notification No. 239/86-C.E. against the CT 2 certificates issued to them by HMT, Pinjore. 1.4 The appellants were also issued with CT 2 certificates to enable them to procure some of the components for use in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all submit his explanation to the Superintendent, who then shall decide the matter according to law after giving opportunity of hearing to the petitioner. The Petitioner shall not seek adjournment on the date of hearing prescribed. (iii) Pending passing of final order in pursuance of this order, the position that obtained on 12-8-1991 shall continue. 1.8 The Superintendent of Central Excise, Range-II, Ghaziabad, then issued Show Cause Notice C. No. 20/CE/CT 2/90/1059 dated 9-9-1991 making it answerable to the Assistant Collector of Central Excise, Division-II, Ghaziabad, on the grounds that the admissibility of the Notification No. 239/86 dated 3-4-1986, could only be decided by an officer not below the rank of an Assistant Collector of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms, when supplied as original equipment parts for the manufacture of tractors of power take-off horse power not exceeding 25, are entitled to full exemption from central excise duty subject to observance of Chapter X procedure, under Notification No. 239/86-C.E., dt. 3-4-1986. It has been reported that whereas exemption under the above Notification has been allowed on the above finished auto-electrical components supplied as original equipment parts for the manufacture of tractors of power take-off horse power not exceeding 25, the said exemption had not been allowed on the sub-assemblies of the finished sub-electrical components which are manufactured in the same factory and utilised within the factory for the manufacture of finished sub-e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , provided that the conditions prescribed in the said notification (including the end-use verification) are satisfied. [Emphasis supplied] [F. No. 156/1/87-CX-4 (Circular No. 2/18-2-1987)"] 2.2 Learned advocate has further submitted that in any case, sub-assemblies manufactured by them have been utilised on OE parts in the manufacture of tractors. Therefore, sub-assemblies are also clearly exempted under the said Notification. In fact exemption on sub-assemblies being manufactured by them under Notification 239/86 has been extended to the appellants under classification lists filed by them on production of CT 2 certificate by HMT Pinjore. It has therefore, to be held that parts procured by the appellants from their vendors were intend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not satisfied because the parts procured by the appellants from their vendors cannot be said to be intended for use in the manufacture of tractors nor have actually been used as such when the appellants are not manufacturer of tractors. It is a substantial condition of the notification. It is not merely a procedural condition. 3.2 He has also urged that the situation stipulated in the Board's circular No. 2 dt. 18-2-1987 is also different. Therein the benefit is available to parts used in sub-assemblies in the same factory in which the parts are manufactured. In the present case, appellants' sub-assemblies are manufactured in another factory. 3.3 Thermax (P) Ltd., relied upon by the appellants' learned advocate, submits the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
