9911796707
TMI Blog1993 (6) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ngines, the petitioners have been importing certain components from time to time, a list whereof is annexed as Exh. 'B' to the petition. The petitioners also import other components such as crankshafts, camshafts, turbochargers, governors, starters, belts etc. Prior to August 2nd, 1976 the said component imported by the petitioners were liable to customs duty under the provisions of the Indian Tariff Act, 1934. At the time of assessment of the components, the customs authorities claimed that the components were liable to countervailing duty under Item No. 34A of Central Excise Tariff. 2. The petitioners disputed the claim made by the authorities pointing out that the components were imported for assembling the internal combustion diesel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Counsel appearing on behalf of the petitioners, submitted that the findings of the authorities below that the components imported by the petitioners are liable to payment of countervailing duty is unsustainable. Shri Korde submitted that reliance on Item No. 34A of Central Excise Tariff to conclude that the petitioners are liable to payment of countervailing duty is entirely erroneous. Shri Korde, submitted that it was not in dispute before any of the authorities below that all the components imported by the petitioners had gone into assembly of diesel engines. It was also not in dispute that 89% of the diesel engines manufactured by the petitioners are used for stationary purposes and hardly 11% are used in dumpers. Shri Korde submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within Item No. 34A or the Central Excise Tariff. Item No. 34A deals with parts of motor vehicles, tractors and the tariff description reads as under :- "34A. Parts and accessories of motor vehicles and tractors, including trailers, the following, namely:- (i) Brake linings; (ii) Clutch facings; (iii) Engine valves; (iv) Gaskets; (v) Nozzle and nozzle holders; (vi) Pistons; (vii) Piston rings; (viii) Gudgeon pins; (ix) Circlips; (x) Shock absorbers; (xi) Sparking plugs; (xii) Thinwalled bearings; (xiii) Tie rod ends; (xiv) Electric horns; (xv) Filter elements, inserts and cartridges. <?xml:namespace prefix = st2 /> Explanation I. - The expression 'Motor vehicles' has the meaning as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to in Item No. 34A, were imported specifically for the purpose of assembling diesel engines and not as parts and accessories of motor vehicles. The final product i.e. diesel engine may have been fitted on dumper but that would not make every component or part of the diesel engine as part and accessory of the motor vehicle. In our judgment, the view taken by the authorities below is entirely unsustainable and the petitioners are entitled to the relief. 5. Shri Sethna then submitted that even though the impugned orders are set aside and the respondents are restrained from recovering countervailing duty on the components imported by the petitioners, still the relief of refund sought by amendment cannot be granted. Shri Sethna submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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