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TMI Blog2015 (5) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, interchangeable tools etc. The process of manufacturing of motor vehicles parts involves various operations. The appellant, for this purpose, also makes use of material handling equipments like hand trolley or fork lift etc. These trolleys and fork lift are placed on iron/steel or aluminum known as "3 FAG Pallets". These pallets are manufactured by the appellant in its own factory and captively used for the aforesaid purpose. Two issues have arisen in respect of these pallets. First relates to its classification and second issue is as to whether the appellant, in respect of the aforesaid pallets, can claim benefit of Notification No.67 /95-CE dated 16.3.1995, as amended and prevalent on the date when the dispute arose, namely, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of heading Nos. 84.5 to 84.30. The impugned pallets are not parts of fork-lift trucks as they are complete without these pallets. It has been held by the Tribunal in the case of Sandvik Asia Ltd. Vs. C.C.E., Pune, 1997 (93) E.L.T. 475 (T) that "a part is one without which the particular machinery was not operational or could not suitably discharge the function for which it has been designed". The Tribunal in the said decision has found that inserts were not parts of the excavator as "the excavator was operational even without these inserts and they were meant only to improve the life of the teeth provided with the scoopers". In the present matter also the fork-lift truck is operational without pallets and as such pallets are not parts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds: (i) Capital goods as defined in rule 57Q of the Central Excise Rules,1944 manufactured in a factory and used within the factory of production; (ii) goods specified in column (2) of the Table hereto annexed (hereinafter referred to as 'inputs') manufactured in a factory and used within the factory of production in or in relation to the manufacture of that products specified in column (3) of the said Table; from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central excise Tariff act, 1985 (5 of 1986): Provided that nothing contained in this notification, shall apply to inputs used in or in relation to the manufacture of final products (other than those cleared to a unit in a Free Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act; (iii) goods classifiable under sub-heading Nos. 2710.11, 2710.12, 2710.13 or 2710.19 (except Natural gasoline liquid) of the Schedule to the said Act; (iv) high speed diesel oil classifiable under heading No.27.10 of the Schedule to the said Act. All goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely,- (I) goods classifiable under any heading of Chapter 24 of the Schedule to the said Act; (ii) goods classifiable under heading No. 36.05 or 37.06 of the Schedule to the said Act; (iii) fabrics of cotton or man made fibres falling within Chapters 52, Chapter 54 or Chapter 55 of the Schedule to the said Act; (iv) fabrics of cotton or man made fibres falling within he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Tariff Act except certain specified items. Thus, the question that arises is as to whether the goods in question, namely, pallets manufactured in the factory are used within the factory of production in or in relation to the manufacture of the final products. It is an admitted position, as explained by the appellant itself, that these pallets which are manufactured/assembled in the factory of the appellant are in the nature of material handling equipment, to keep and carry work in progress goods from one machine to the other. Thus, the use of the pallets is for carrying out the material from one machine to the other. It cannot, therefore, be said that these goods are used in relation to the manufacture in or in relation to the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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