ORDER
S.K. Dhar, Member (T)
1. All these appeals are directed against common Order-in-Appeal, dated 31-3-1987 passed by the Collector of Customs (Appeals), New Delhi. The appellants imported, under 5 Bills of Entries, consignments which were described in the Bill of Entries as components for honing machines. These were assessed to duty under CTH 8466 with benefit of exemption Notification No. 181/87, dated 29-4-1987. The appellants subsequently filed a refund claim claiming benefit of exemption under Notification 156/86, dated 1-3-1986. This claim was rejected by the Assistant Collector. The Collector (Appeals) upheld the order. Their claim for benefit of auxiliary duty under Notification 159/88, dated 13-5-1988 which would accrue to them once benefit is held due under Notification 156/86 was also rejected.
2. The learned Advocate submits that the goods have been assessed to duty as parts of honing machines classifiable under Heading 84.60 and therefore, the parts would be classifiable under Heading 84.66. Benefit of Notification 156/86 would therefore, have to be given.
3. The learned DR opposes these contentions and submits that the parts also included general purpose parts as indicated by the Collector (Appeals) and, therefore, such general purpose parts would not be classifiable under Chapter 84.66. In this view of the matter, benefit would not be admissible. While conceding that they are parts of honing machines, the learned DR stated that this was done for the purpose of Notification 151/87 since what was material in the notification was whether the goods were in the composition of finished articles mentioned in the table appended to that Notification.
4. We have heard both sides. We find that the goods have been assessed to duty under Heading 84.66. Sub-heading 84.66 under heading 93 refers to parts and accessories suitable for use solely or principally with machines under Headings 84.56 to 84.61. Honing machines fall under CTH 8460.40. Bills of Entries indicate both CTH 84.40 and 84.66. It was conceded before us that no Revenue appeal against this assessment has been filed. On going through Notification 156/86, we find that this notification exempts component parts of machine tools for working metals which are classifiable under Heading 84.66 or 98.06. There is no dispute that the finished articles are honing machines. The Assistant Collector without recording any reasons, has rejected the claim for benefit under Notification 156/86, dated 1-3-1986 recording that ‘the benefit of this notification does not apply to the goods imported by the party’. The Collector (Appeals) has observed that many parts fall under different items. Accordingly, these component parts of machine tools working metals under Tariff Heading 84.66 and 9806 are entitled to this benefit. The goods have been classified under Headings 8460.40 and 8466.93. This was according to him, a relevant factor since in the alternative, once it is held that goods are classifiable under Heading 84.66, they would merit classification under Heading 9806. Notification 156/86 would squarely cover the goods. We find considerable merit in this proposition. Assuming that all the goods are not covered under Heading 84.66, so long they are covered under Headings 84, 85, 89 and 90, they would, by virtue of Chapter 1 to 98, fall under Heading 98.06. Since Notification 156/86 mentions not only Heading 84.66 but Heading 98.06 also, such goods, being parts of machine tools for working metals, would be eligible to Notification 156/86. We have earlier referred to the fact that goods have been accepted as parts of honing machines classifiable under Heading 84.66 and there was no Revenue appeal. It was however, fairly conceded by the learned Advocate that if certain goods do not fall under Chapters 84, 85, 86 and 90, exemptions could be denied in respect of such goods.
5. As regards auxiliary duty under Notification 159/85, dated 13-5-1985, once it is held that these goods are eligible to concession under Notification 156/88, exemption under Notification 159/88 would follow since Notification 159/88 at Sl. No. 195 mentions Notification 156/86, dated 1st March, 1986. This notification exempts goods which are partially or wholly exempt from the duty of customs specified in the First Schedule to the Tariff Act by virtue of a Notification in the Ministry of Finance, Department of Revenue, from the whole of duty of excise leviable on such goods under Section 157 of the Finance Act. If therefore, goods are covered under Notification 156/86, they would also be exempted from auxiliary duty.
6. We donot have the details of all the goods which are claimed to be parts assessable to duty under CTH 84.66 and which goods would go out of this heading. We therefore, remand this matter to the Assistant Commissioner of Customs for de novo decision after arriving at a finding as to which goods would be covered under Chapters 84, 85, 89 and 90 and would, therefore, consequently get benefit of Notification 156/86 and 159/88. The appellants shall be heard in person and appellants would be at liberty to produce such additional evidence as they consider would support their case.
The appeals are allowed by way of remand.