TMI Blog2003 (11) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ble as such drilling rigs or independently on them. 2. The Commissioner in his order has recorded the items consist of such items as travelling block with sheaves, swivel, kelly, drilling rods, drill collar etc. He finds that these parts were making sub-assembly of drilling rig which are attached to the rig for their functioning and their site. He has therefore held that the cost of these items should be includable in the value of the drilling rigs cleared by the appellant since they have not done so, the rigs were undervalued. He has confirmed the notice issued to the appellant demanding duty of the drilling rigs on the value determined by including the cost of such equipment and imposing penalty. 3. The contention of the appellant tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther tools, drilling rods pipes and bits, and concluded, It is evident that even though drilling rigs have necessarily to be used in conjunction with items such as drill rods, pipes and bits, these items do not constitute parts of such machine which are complete items in themselves. It also took note of the fact that requirement for such pipes and bits varied from user to user, slip wrenches, player, screwdriver etc. It therefore held that the cost of these items is not to be included in the value of the drill. Disposing of the appeal against this order the Supreme Court, relying on its earlier judgment in CCE v. Premier Mills - 1992 (57) E.L.T. 197 confirming this decision on merits. 6. Applying the ratio of this decision, therefore it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l setting up or for assembly or manufacture of any article specified in the table annexed to it subject to fulfilment of production of certificates from specified authorities and on execution of a bond. Among the articles specified in the table to the notification are drilling machines classifiable in Heading 84.30 of the Tariff. The imported goods were cleared after extending the benefit of the exemption. Subsequently, notice was issued on the ground that the benefit of the exemption contained had been wrongly claimed. In the proceedings before the Commissioner of Customs, the appellant had contended that the imported parts used in the manufacture of such goods as travelling blocks, hoisting plugs, central elevators, spider base, water swi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . So far as pipes are concerned, the position is clear. The Counsel for the appellant cited from the explanatory notes to show that such items tools also could not form part of the rigs. Clearly, tools meant for repair to, and maintenance of a rig could not be classifiable as parts of such rigs. The same conclusion that we have arrived at with regard to pipes would apply to such tools. 10. It is contended that the appellant manufactured crown block, travelling block (double sheave or single sheave), mast, hoist plug, sandreel drum, mud pump, hoist drum, some slips, spider base, drill head, chuck, water swivel, bits, imported delivery hose, stand pipe, suction hose, drill collar, drill pipe and drag bits, subs, bits, spider bush, spider, s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
