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TMI Blog1997 (4) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... hese appeals from Committee of Secretaries as observed by the Supreme Court in the case of M/s. O.N.G.C. to proceed with the matter. On going through the respective minutes we are satisfied that the party has obtained the clearance. 2. In the first 5 appeals the point to be considered is whether benefit of exemption in terms of Notification No. 13/81-Cus. as amended from time to time can be extended to spares for 120 Tonne capacity production truck (Wabco Truck). Similarly whether benefit in terms of Notification No. 13/81-Cus. can be extended to spares for drills is an issue to be considered in Appeal No. C/3461/87-B. 3. The benefit of exemption in terms of Notification No. 13/81- Cus. has been denied by the authorities below on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o exclude vehicles which are used for removing from the place where the mining operation are connected to the factory where the manufacturing process starts and in this view, locomotive and motor vehicle accessories and spare parts for the above vehicles are used for carrying load and other raw material used in the course of manufacture. Relevance has also been placed by him in the case of J.K. Cotton Spinning Weaving Mill Co. Ltd. [1997 (91) E.L.T. 34 (SC) = Vol XVI Sales Tax Cases, 1965 pages 563 to 571] wherein it was held The expression in the manufacture of goods in Section 8 (3) (b) should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment and in the instant case truck cannot be considered to be a material handling equipment. Merely this was carrying Ore to the stage of crushing and this cannot be considered to be a handling material equipment and at best it can be said to be carrying Ore. Since the item in question has neither carried any raw material nor taken part in the manufacturing process of the final product, the same cannot be said to be a production machinery and accordingly spares of these trucks cannot be eligible items for exemption in terms of the notification 13/81-Cus. 6. We have carefully considered the submissions made by both sides and perused the records. The appellants M/s. Kudremukh Iron Ore is wholly Government of India Enterprises. The appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 81. These findings can be seen from the order dated 12-4-1989 in appeal No. C-25 AP/495 etc. /1988-Cus. in B. Cus. 117-133 of 1988-89. Similarly with reference to the claim for assessment of drills with compressors, he gave a finding in his order dated 4-1-1988 that the function of the drills cannot be considered as part of the production process and hence the lower authorities order disallowing the concessional assessment is maintable. It was the contention of the party that truck is not a mere handling equipment but it was used in connection with the production not only in handling the material but employed in connection with the production of the initial product as an integral part of the production machinery at the plant. Similarly, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would be essential for arrying on the operation of processing that the ore should be carried from the mining site where the mining operation comes to an end to the place where the processing is carried on and that would clearly be an integral part of the operation of processing and if any machinery, vehicles, barges and other items of goods are used for carrying the ore from the mining site to the place of processing they would clearly be goods used in the processing of order for sale. In the present case, the mining of ore was done by the assessee with a view to processing the mined ore through the mechanical ore handling plant at the harbour and the entire operation of mining ore and processing the mined ore was one integrated process o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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