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TMI Blog1997 (11) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ents and accessories such as bicycle gear cases, mudguard, chain wheel, chain adjuster, saddles, side stand, crank pedals, etc. The petitioner also applied to the second respondent for cash compensatory support against the export under Serial Number 9(b) Bicycle components and accessories of the Ministry of Commerce Letter No. 12(1)/79/EAC, dated 10-1-1979. On 9-6-1982 the second respondent wrote to the petitioner to the effect that the cash assistance for Rs. 1,90,005/- was allowed to the petitioner on account of wrong classification of the export product, that bicycle spare parts were not eligible for import replenishment and cash assistance in respect of exports covered by the invoices referred to therein of the total value of Rs. 10,85,708/- that it was proposed therefore to recover the excess cash assistance of Rs. 1,90,055/- (sic) and that the said amount should be remitted in the Central Bank of India. The petition sent a reply on 5-7-1982 pointing out that there could not be any variation or distinction between components and parts which were normally used in respect of engineering goods, that the goods exported on various dates were only components to serve as original e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these Committees would, however, be forwarded to the Ministry of Commerce for ratification by the Headquarters classification Committee. Yours faithfully, Sd/- (C.B. Kukreti) Joint Director. 1. Copy forwarded to all concerned as usual. 2. Copy also forwarded to : (i) Chief Controller of Imports and Exports, New Delhi. (ii) All Licensing Offices under the CCI E, It is clarified that the decisions relating to classification of items for the purpose of cash compensatory support taken by the Regional Classification Committees, as well as these circulated by this Ministry on the basis of the decisions taken by the Head Quarters Classification Committee or Cash Assistance Review Committee would apply, whether at original or appeal stage, to cases considered and decided after the date of the decision. The words after the date of the decision in the letter dated 27-11-1980 were subsequently substituted by the words on or after the date of issue of the order by corrigendum dated 8-12-1980. It was further represented to the Ministry of Commerce that the circular dated 20-6-1983 had amended the entry under Column-2 against Sl. No. 9 of cash compensatory support as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... howed that spare parts could be clearly distinguished from components. The petitioner itself had described that the goods were spare parts in the Export Shipping Bill. The C.C.S. was payable only on the basis of the policy in force at the time of export. At the time of export the relevant entry in the C.C.S. compendium read as bicycle complete (all types) and bicycle components/accessories. Subsequently, this entry was amended to include spare parts. The amendment would not have any retrospective effect. The amendment was not made on the representation of the writ petitioner. The exports made prior to the amendment could not have the benefit of cash compensatory support. The orders passed by the first and the second respondents were perfectly valid and in accordance with the policy in force at the time of export. 4. Mr. R. Thiyagarajan, learned Senior Counsel for the Petitioner, submitted as follows :- Bicycle spare parts had been made in large quantities and that by itself would indicate that they were not exported for replacement and that they satisfied the definition of components and accessories entitling the petitioner to the benefits of cash compensatory support, thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter was only making explicit what was already implicit. Again, there had been discrimination in that in respect of Vacuum Flask refills, the policy revision was applied with retrospective effect. The learned Senior Counsel also relied on the decision of the Supreme Court in M/s. Star Paper Mills Ltd. v. Collector of Central Excise Meerut, [1989 (43) E.L.T. 178 (S.C.) = AIR 1989 SC 2066]. 5. Mr. K. Ilias Ali, learned Additional Central Government Standing Counsel appearing for the respondents, countered the arguments on behalf of the petitioner as follows :- Merely because the items were exported in bulk did not mean that the goods were not spare parts and should be treated as synonymous with components and accessories. They did not become components merely because they had been made in large numbers. The shipping bills also clearly described the goods as spare parts. The denial of C.C.S. to the petitioner was in accordance with the policy. At the time the petitioner exported the goods, spare parts were not eligible for C.C.S. and the denial of C.C.S. to the petitioner was in order. Circular No. 12(42)/87-EAC, (sic) dated 8-5-1985 clearly directed that amendments enabling sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net Works (XXII Sales Tax Cases 63) and 3. Commissioner of Sales Tax, U.P. v. Sharda Electric Battery Works (43 Sales Tax Cases 371). 9. Dealing with the question whether writ watch cases with chromo-steel back were spare parts of watches within the meaning of Entry 10 of Schedule E to the Bombay Sales Tax Act, 1959, a Bench of Gujarat High Court in the decision Vithal Chhagan Sons. v. The State of Gujarat (XVII Sales Tax Cases 96) held that every part which went in the making of an article and was, therefore, a component part of the article would not necessarily be a spare part of the article and since the watch case was undoubtedly essential for the functioning of a wrist watch as a wrist watch, it should be held to be a spare part of a wrist watch within the meaning of Entry 10 of Schedule E to the Bombay Sales Tax Act, 1959. 10. In Commissioner of Sales Tax v. Amar Radio Cabinet Works (XXII Sales Tax Cases 63), a Bench of the Bombay High Court observed that, the expression spare parts" in Entry 65 connoted a part which required replacement in the ordinary course on account of wear and tear, and as an extra item for use in an emergency." In that case, the Bench hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal equipment only. It is also to be noted that in respect of bicycle parts exported by the petitioner no warranty or performance guarantee was given. The manufacture of the cycle would not be complete without the component parts and the nomenclature spare parts would not mean that the parts exported were not component parts or accessories. In my considered view, the words spares and component parts and accessories had been interchangeably used to the cleavage or it was sought to be introduced in an attempt to bring about a distinction without any difference. The authorities had all along been aware that the spares in the earlier unamended entry meant and included components and accessories and right through they had understood the term only like that and had also given the benefit of C.C.S. to the petitioner and it was not open to the authorities to resile from the earlier position. What they meant to do subsequently by introducting an amendment was only by way of clarification and as contended by the learned Senior Counsel to make something explicit, which was already implicit. 14. Again, the learned Senior Counsel is well founded in his submission that there was discrimin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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