9911796707
TMI Blog2000 (10) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... Shovel, Motor Graders, CAT Front End Loader, Terex Front end Loader, Komatsu Dozer, 35T Capacity Haulpack Truck, Poclain Excavator and Water Sprinklers. These equipments were, according to the appellant, part of the machinery used in their mine where iron ore is being mined and exported to foreign countries. The spares imported for the above mentioned machines were claimed to be spares of machinery used for the purpose of manufacture of article meant for exports out of India and so falling within the purview of Notification No. 13/81-Cus., dated 9-2-1981 as amended by subsequent notifications. On this basis it was stated that those spares imported are not liable to duty. But those spares were cleared on payment of duty on protest and thereu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a production machinery. As Benches consisting of two Members and three Members dealt with the scope and ambit of Customs Notification No. 13/81-Cus. in the above mentioned cases, the present reference made by a Bench of two Members has been posted before this larger Bench of five Members. 3.The question that arises for consideration is whether the spares got imported by the appellant for Wabco Trucks, P H Shovel, etc. mentioned earlier, fall within the purview of Notification No. 13/81-Cus. Central Government issued Customs Notification No. 13/81-Cus. on 9-2-1981. The preamble to that notification stated that goods specified in the Table attached to it, when imported into India for the purpose of manufacture of articles for exports ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltant product but are required in order to manufacture the resultant product. In view of this statement of law, when one examines the preamble to Notification No. 13/81-Cus., its scope and ambit is beyond doubt. Those goods specified in the Schedule, when imported into India for the purpose of manufacture of the final article, should get exemption from duty and additional duty. The goods imported need not necessarily be directly connected with the manufacture of the article meant for export. If the goods imported are essentially connected to the purpose of manufacture, such goods must also fall within the ambit of the notification. 4.Wabco Truck, P H Shovel, Water Sprinkler etc. mentioned earlier are not directly used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, Motor Grader etc., involved in this case are machinery used for the purpose of manufacture of article for export of ore out of India. Learned Departmental Representative raised a contention that the above decision of the Supreme Court was one concerning the Sales Tax Act and so cannot be of any assistance in deciding the present issue. We are not in a position to agree with this argument. Whether dealt with under Sales Tax Act or any other Act, the functions and utility of the equipments will not change. Their use continues to be the same. So, the nature of the equipment stated by their Lordships must be taken as their function. 6.Learned Departmental Representative brought to our notice a decision of a larger Bench of five Members of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are afraid, cannot be accepted. Customs Notification 13/81 was amended in 1986 to include material handling equipments in the Table attached to it. Serial No. 6 added to it read as : "Material handling equipments, namely, fork-lifts, over-head cranes, mobile cranes, crawler cranes hoists and stackers." None of the items with which we are concerned in these appeals falls within that category. The question whether Wabco Truck, P H shovel etc. are material handling equipments is also not to be gone into in this case, because, even according to the learned Departmental Representative, material handling equipments mentioned in item 6 in the Table to the notification do not take in trucks, shovel, etc. Further, in this case we are not conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f trucks and drills are eligible for exemption in terms of Notification No. 13/81-Cus." It was further stated by the Central Board of Excise and Customs that they have accepted the CEGAT order and, therefore, similar goods imported should get exemption under Notification No. 13/81-Cus. This clarification issued by the Board binds the authorities under the Excise and Customs Act. They are not entitled to argue against the terms of that letter [vide decision of the Supreme Court in Ranadey Micronutrients v. Collector of Central Excise - [1996 (87) E.L.T. 19]. It is worthwhile to note that their Lordships of the Supreme Court in Steel Authority of India v. Collector of Customs, Bombay reported in 2000 (115) E.L.T. 42 took the view that even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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