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TMI Blog2014 (2) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of COLLECTOR OF C. EX., BANGALORE Versus INGERSOLL RAND (INDIA) LTD. [1998 (3) TMI 151 - SUPREME COURT OF INDIA] - Decided in favour of assessee. - E/3004/2004-Mum - Final Order No. A/1041/2013-WZB/C-II(EB) - Dated:- 4-12-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant: Shri Ramesh Nair, Adv For the Respondent : Shri Navneet, Addl. Commissioner (AR) PER : Anil Choudhary This appeal arises out of Order-in-Original No. 41-48/COMMR/CEX/IND/2004 dated 7.7.2004 passed by the Commissioner of Customs Central Excise, Indore. 2. The brief facts of the case are as follows:- (i) The appellant, M/s Kores (India) Ltd., are engaged in the manufacture of Drilling Rig and Mud Pump and cleared the said dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir own to buyers and not along with the supply of such rigs. As the said bought-out items did not amount to parts of the said rigs for excise purposes, the appellant did not include the value of these items in the assessable value of the said rigs while paying excise duty on the rigs. (ii) The department issued a show-cause notice dated 11.12.1992 alleging that the said bought-out items amount to essential parts of drilling rigs and mud pumps manufactured by the appellant and the value of the said items was liable to be added to the value of the rigs and excise duty was recoverable on the same. It was also alleged that the appellant has suppressed the fact that the said items amounted to essential parts of rigs and had cleared the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order and allowed the appeal by way of remand holding that the appellant manufactured crown block, traveling block (double sheave or single sheave), mast, hoist plug, sandreel dram, mud pump, hoist drum, some slips, spider base, drill head, chuck, water swivel, bits imported by delivery hose, stand pipe, suction hose, drill collar, drill pipe and drag bits, subs, bits, spider bush, spider, slips, Kelly, driver bush, elevators, fishing tools, rotary chain tongs and wrenches. The appellant cited copy of ISI specification (IS:78206 Part-I 1986) specifying general requirement of direct required for motor drilling. Among the items it shows that parts of a rig are a mast. The cost of mast therefore would be included. However, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rigs. Clearly, and tools meant for repair two and maintenance of a rig could not be classifiable as parts of such rigs. The same conclusion that we have arrived at with regard to pipes would apply to such tools. (c) It was submitted that all these items are also in the nature of operating equipment or accessories which are to be used in conjunction with the rig and cannot be considered parts of the same. (vii) The learned Commissioner also took notice of the ruling of this Tribunal in the case of Ingersoll Rand Vs. CCE - 1994 (69) ELT 737 (T) which was confirmed by the Hon'ble Apex Court in Civil Appeal No. 4371 of 1994 vide order dated 5.3.1998 wherein the Hon'ble Apex Court held that drill rods/pipes and drill tools etc. a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f use of the rigs and placement of the aforementioned parts. From perusal of the same and form the explanation given, it is evident that the same do not part of the rig, but are in the nature of the tools and other equipments. 4. The learned Addl. Commissioner (AR) appearing for the Revenue reiterates the findings of the Commissioner and also relies on the ruling in the case of Commissioner of Central Excise, Pune Vs. Thermax Bobcock Wilcox Ltd. - 2005 (182) ELT 336 (Tri-Mum) wherein, in the case of boiler, pressure parts of boiler were removed in several consignments, to be regarded as boiler in incomplete form and classifiable as boiler being essential parts of boiler, as it is not possible to clear the complete boiler in one go. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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