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TMI Blog2009 (6) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... llants argued the issue in detail and made following submissions. 2.1 The wires and cables manufactured by the appellants are specially designed and manufactured for the purpose of using the same in aircrafts/satellite launch vehicles, Helicopter etc. This is admitted by the Commissioner also in his Order itself. As far as customers are concerned, these wires and cables have been accepted as parts of aircrafts or other goods as discussed above and in each and every case of clearance, certificates have been produced issued by the purchasers as well as the Directorate General of Civil Aviation. In each and every case not only certificates have been produced before supply but also end use certificates have been produced from the users subsequently. 2.2 The goods supplied to the institutions registered with the Government of India, Department of Scientific Industrial Research or DRDO are exempt from payment of duty under various Notifications mentioned above and the Notification in force presently is Notification No. 10/97-C.E., dated 1-3-97. Similarly goods which are parts of aircrafts or helicopters are chargeable to nil rate of duty under Notification No. 6/2002-C.E., da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so submitted that merely because a large number of items are being allowed to be cleared without payment of duty under the notification wrongly, it does not mean that the practice should be allowed to continue. 6. We have considered the submissions made by both the learned advocate as well as the J.C.D.R. on behalf of the Revenue. Notification No. 6/2002 CE dated 1-3-2002 exempts all parts of aeroplanes and helicopters following with the schedule to the CETH, 1985 required for manufacture or servicing of aeroplanes and helicopters (other than rubber tyres and tubes for aeroplanes), from the whole of the duty of excess leviable thereon which is specified in the schedule. The notification also provides explanation which provides that for the purpose of notification, parts of aeroplanes and helicopters shall include engine, engine parts, wireless transmission apparatus, wireless receivers, iron and steel washers and screws, ball and roller bearing and other parts. The learned advocate has contended that department has accepted the classification of wires and cables manufactured by them under CETH 88 and therefore appellants are eligible for this exemption. However, as can be see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that insulated wires and cables cleared in running length as wires and cables, are not parts of battle tanks and hence not entitled to the benefits of notification. In C.C.E., Mumbai v. Fibro Products reported in 2001 (134) E.L.T. 481 (Tri.-Mumbai) it was held that electroplated copper wire to become part of an electric lamp, must be cut to size and shape so that it was solely or principally used only in lamp and copper wire in running length can have any number of uses and cannot be considered as part of lamp. However, the learned advocate for the appellants has contested on the ground that with regard to Notification No. 10/97 and 64/95, several items which cannot exactly be said to be covered by the notification have been allowed by the Tribunal. Therefore, before reaching the final conclusion in respect of this notification, it would be appropriate to examine whether appellants are eligible for the benefits of other notifications and whether those cases help the appellants in this case also. 8. Notification No. 10/97-C.E. provides for exemption to (a) Scientific and technical instructions apparatus equipment (including computers). (b) &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urer - Lamtuf Plastics Ltd.) 10. Coming to the last notification namely 64/95, the relevant notification is reproduced below for ready reference. "Goods for defence purposes for specified purposes. - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944) read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, goods specified in column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table, from the whole of - (i) The duty of excise leviable thereon which is specified in the said Schedule; and (ii) The additional duty of excise leviable under the second mentioned Act on goods specified against S. Nos. 1, 2, 3 and 4 of the said Table; Provided that in respect of S. No. 16 of the said Table, nothing contained in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the National Defence Fund or the Ministry of Defence that the goods have been received by them. 3. All goods other than cigarettes If supplied as stores for consumption on board a vessel of the Indian Navy. 4. Cigarettes falling under heading No. 24.03 If- (i) supplied as stores for consumption on board a vessel of the Indian Navy; (ii) the manufacturer follows such procedure as may be specified in this regard by the Collector of Central Excise having jurisdiction over his factory; and (iii) the Commanding Officer of the Indian Navy Ship issues to the officer-in-charge of the bonded warehouse from where the supply of cigarettes has been made, a certificate, within a period of six months from the date of supply of cigarettes on board the said ship, to the effect that the cigarettes supplied as stores on board the Indian Navy Ship have been consumed on board the said ship. 5. All goods If- (i) supplied to the Project SKYLARK under the Ministry of Defence; and(ii) before clearance of the goods, a certificate from the Project Director, Project SKYLARK to the effect that such goods are intended for assembly, erection and installation of Naval V.L.F. Transmitting Station ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere than in the factory of production of the said goods, the manufacturer produces within five months from the date of clearance or within such extended period as the Assistant Collector of Central Excise may allow in this regard, a certificate from the said Chairman or Member Secretary or as the case may be the said Director, indicating the date of the receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use. 9. All goods falling under heading Nos. 86.01 to 86.06 If intended for use by the Indian Railways. 10. Internal Combustion engines and electric storage batteries falling under Chapters 84 to 85 If- (i) such engines are designed for use as prime movers for transport vehicles and given for that purpose some special shape, size, or quality which would not be essential for any other purpose; (ii) it is proved to the satisfaction of the officer not below the rank of Assistant Collector of Central Excise that they are intended to be used as original equipment parts in the manufacture of vehicles falling within Chapter 87 of the said Schedule, manufactured in a Central Government Ordnance Factory; and S. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this exemption indicating the full description and quantity of the said goods to be supplied to the forces mentioned above. 15. All goods If manufactured and consumed within the factory of production of the bullet proof jackets for supply to the Armed Forces of the Union under the Ministry of Defence or to the Police Forces of the States or the Union territories. 16. All goods If- (i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and (ii) before clearances of the goods, a certificate from the Programme Director. Programme SAMYUKTA to the effect that such goods are intended for the said Programme SAMYUKTA, is produced to the proper officer." 11. According to the learned advocate, the wires and cables supplied by them are eligible under this notification. However we find that wires and cables can be said to be covered by Sl. No. 8 of the Notification reproduced above since it covers stores also. The exemption is not limited to only parts or equipments but also systems, sub systems, equipments and stores. Therefore, a view can be taken that wires and cables are nothing but consumable stores which are stored and used from time to time as and when r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttle tank and electric lamp etc. In view of the self contained nature of the notification and also in view of the above discussion, the appellants are to be held ineligible for the benefit of Notification No. 6/2002 only. 15. The appeal is allowed partially on the above terms. Cross objections filed by the Revenue also get disposed of. (Pronounced in Court on) 16. [Order per : Archana Wadhwa, Member (J)]. - I have gone through the order proposed by my learned brother vide which he has allowed the appeal partially by holding that the benefit of Notification No. 10/97-C.E. is available to the wires and cables manufactured by the appellant whereas he has held that Notification No. 6/2002 is not available to the appellant. I find that the appellants had claimed benefit of both the notifications, in the alternative. This also stand clarified by written submissions filed by learned advocate appearing on behalf of the appellant wherein he has clarified that if the benefit of either of these notifications is held to be available then also the dispute would not survive. As such, reserving my views on availability of Notification No. 6/02 (as the same would be of only academic i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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