TMI Blog1996 (7) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise duty. This benefit was subject to compliance with conditions and formalities mentioned in the Notification. The setting up of the plant was completed on 17-3-1983 and it was commissioned immediately. Capital goods, components brought into the factory till the date of commissioning were allowed the benefit of exemption. The present Appeal relates to duty liability on refractory bricks, castables and mortars brought into the factory in 1982-84, railway (wagon side) derailing switch brought into the factory in 1982 and spare tyre, tubes and flaps brought into the factory [in] 1984 and 1985. After notice to show cause and personal hearing, the Collector of Central Excise passed the impugned order holding that the benefit of Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntieth Century Dictionary (1982 Reprint)]. 5. Tyres, tubes and flaps as also derailing switch which were used to replace damaged or worn items originally brought into the [factory] are undoubtedly spare parts of dumpers or the railway siding system, as the case may be. Their use as spares shows that they are components within the meaning of the Notification. If component means a part, a part which is actually used as a spare part must be regarded as a component. According to the Department, the word component has been used in the Notification in contra-distinction to the word spare part . The component, as we have already indicated means only part and spare part being essentially a part must be regarded as a component. The expression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the show cause notice contains an unambiguous statement that the railway system is used for both purposes, viz. for bringing capital goods, components, raw materials and other articles to the factory and also to transport finished goods. That being so, that derailing switch must be regarded as the component used in connection with manufacture of articles. 9. In the light of what we have indicated above, the articles in dispute which were brought into the factory were not liable to duty as they enjoyed the benefit of the Notification. In this view, it is unnecessary for us to consider the plea of the Appellants that the larger period of limitation in the proviso to Section 11A of Central Excises and Salt Act, 1944 could not be validly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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