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TMI Blog2018 (7) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... Ground Power unit is part of aircraft only meant for exclusive use of aircraft, classifiable under CETH 8803 of the Central Excise Tariff Act, 1985 (CETA) and hence subject to Nil rate of tariff rate of duty. The Revenue has sought to classify the item under CETH 8502 of CETA and attracting Excise Duty @ 16%. Proceedings initiated culminated in impugned order wherein inter alia, the classification of Rotary Frequency Converter (RFC) was confirmed under CETH 8502.90 of CETA, duty demand of Rs. 2,80,000/- with interest was confirmed and penalty of Rs. 25,000/- under Rule 25 of the Central Excise Rules, 2002 was imposed. Hence the appellants are before this forum. 2. Today when the matter came up for hearing, on behalf of the appellant, Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d elsewhere. v) Ld.Counsel draws our attention to Item No.240 of Notification No.6/2002-CE dt. 1.3.2002 which accords duty exemption to parts of aeroplane or helicopter required for manufacture or servicing of aeroplane or helicopter. She pointed out that in the Explanation to the said item, parts of aeroplane finds to include not only engine parts etc but also items like iron and steel washers and screws etc. vi) The Tribunal in a number of their own cases have held that components of GPU such as parts and accessories and control panels are parts of aircraft, for example as reported in 2007 (211) ELT 123 (Chennai) and 2017 (10) TMI 1024-CESTAT Chennai. 3.1 On the other hand, Ld. A.R Shri K. Veerabhadra Reddy opposes the appeal and suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard both sides and have gone through facts. 5.1 A perusal of the Tribunal decision in Mak Controls which has been upheld by the Hon'ble Supreme court relied upon by Ld. Advocate supra, will indicate that the basic test applied while holding that GPU is part of air craft as found in para-51 of the order is as under : "51. Then what are the facts? They are that this GPU is : (a) a specially designed machine or sub-system which can be only used in attachment to a specific model and brand of an aircraft viz., Airbus 320; (b) almost five times as costly as a normal 90 KVA D.G. Genset would be, because of certain special inbuilt features; and (c) used as a substitute of the inbuilt power unit in the aircraft, when it is on the ground. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ft and not for any other commercial purpose has been peremptorily dismissed by the authority recording thus: "I am not inclined to accept this plea." 5.4 In the circumstances, and also taking into account the fact that GPU (Diesel Engine) has been held to be part of the aircraft by virtue of Tribunal decision in Mak Controls (supra) affirmed by the Hon'ble Supreme Court (supra), we find that interest of justice will be met by remanding the matter back to the adjudicating authority for reconsideration of the issue of classification after applying the test laid down by the Tribunal in para-51 of the earlier decision in appellant's own case as reported in 2001 (138) ELT 1152 (Tri.-Chennai). However, taking into account that the matter is only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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