ORDER
Shiben K. Dhar, Member (T)
1. This appeal is directed against Order-in-Appeal No. 1242/88-BCH of Collector of Customs (Appeals).
2. The appellants imported “Yoke” declaring the consignment as spare/component part for Ammonia Refrigeration Compressors. The appellants subsequently filed a refund claim on the ground that these spares are eligible to concessional rate of duty in terms of Notification No. 23/77-Cus., dated 8-2-1977. Assistant Collector rejected the refund claim. Collector (Appeals) also rejected the claim and upheld the impugned order on the ground that Notification No. 23/77-Cus, dated 8-2-1977 exempts components only and not the spares.
2A. Arguing for the appellants ld. Advocate submits that Notification No. 23/77-Cus., dated 8-2-1977 does not make a distinction between components and spares. Spare is also a part of the machine, in the same sense a component part is. In other words, spare is also used only as a component part of the equipment.
3. Arguing for the revenue, ld. DR submits that there is distinction between component and spare and this has been explained by the Tribunal in the case of Hindustan Sanitaryware Ind. Ltd. v. Collector of Customs, Calcutta as reported in 1993 (66) E.L.T. 683 (Tribunal). The Tribunal held that first assembly parts are components. If imported extra, these are spares. He also draws our attention to other Notifications particularly Notification 13-Cus., dated 9-2-1981 as amended which indicates components and spares of capital goods to support his claim that even though spares may also constitute parts, these are not components as envisaged in the Notification No. 23/77-Cus.
4. We have heard both sides. Notification No. 23/77-Cus., dated 8-2-1977 exempts component parts of compressors of over 7.5 HP being compressors under Heading 84.11 of the first schedule of the Customs Tariff Act, 1975 when imported into India for use in refrigeration and air conditioning equipment, from so much of that portion of duty of customs leviable thereon which is specified in the schedule as in excess of 40% ad valorem In other words, the Notification grants exemption to component parts imported for use in refrigerating and air conditioning equipment. The intention obviously is to allow import at concessional rate of duty for such component part as are required for manufacture of refrigerating and air conditioning equipment. The goods admittedly are spares only as the plant is already installed. The invoice itself indicates that the consignment is spares for Ammonia Refrigeration Compressors installed in CA Rolactam Plant as per order dated 29-11-1985. The equipment is already installed and these spares are not meant for use in the manufacture of the equipment but only imported as spares. These obviously would not be covered by expression “component part”. In the case of Hindustan Sanitaryware Ind. Ltd. v. Collector of Customs, Calcutta (supra), it has been held by the Tribunal that first assembly parts are components. If imported extra these are spares. In case of Vaz Forwarding Pvt. Ltd. v. Collector of Customs as reported in 1989 (43) E.L.T. 358 (Tribunal), the Tribunal held that such parts as may initially be used in the assembly or manufacture of the machine would be component parts.
5. Following the ratio of these orders, we reject the appeal and uphold the impugned order.