TMI Blog1994 (9) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Tariff ). The appellants were bringing the non-specified parts of motor vehicles from outside under Chapter X procedure of the Central Excise Rules, 1944 (hereinafter referred to as the Rules ), in terms of Notification No. 167/79-C.E., dated 19-4-1979, and were utilising them in the manufacture of internal combustion (IC) engines, falling under Item No. 29 of the Tariff. It was alleged vide show cause notices dated 1-7-1987 and 8-2-1988 that they were not eligible for exemption under Notification, No. 167/79-C.E., on the ground that parts of IC engines were not eligible for exemption under that notification. The Collector of Central Excise, Pune, who adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Advocate relied upon the following decisions :- (1) C.C.E. v. Mahendra Engineering Works - 1993 (67) E.L.T. 134 (Trib.); (2) Hansraj Gordhan Das v. A.C. of Central Excise, Surat - AIR 1970 SC 775; (3) C.C.E., Patna v. Telco Ltd., - 1988 (34) E.L.T. 702 (Tribunal). 5. Shri B.K. Singh, the learned SDR mentioned that there were two show cause notices, dated 1-7-1987 and 8-2-1988 but only one Order-in-Original has been issued. He stated that the IC engine parts were different from the motor vehicle parts and that Notification No. 167/79-C.E. was not applicable to the IC engine parts. On the question of limitation, the learned SDR submitted that the goods were received under Chapter X Procedure of the Rules under which the limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry was substituted and only certain specific items were included within the scope of Item No. 34A. As consequence all unspecified parts became classifiable under Item 68. At the same time under Notification No. 167/79-C.E., dated 19-4-1979 exemption was provided to unspecified parts and accessories of motor vehicles falling under Item No. 68 of the Tariff if intended for use in further manufacture of excisable goods. Notification No. 167/79-C.E. is extracted below : - In exercise of powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944 the Central Government hereby exempts parts and accessories of motor vehicles and tractors, including trailers, falling under Item No. 34A of the First Schedule to the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as payable and in the manufacture of which parts and accessories of motor vehicles and tractors including trailers falling under Item No. 34A of the Tariff, had been used, were exempted from so much of the duty of excise leviable thereon as was equivalent to the duty of excise already paid on the said parts and accessories. This exemption was, however, not available in respect of specified motor vehicle parts. Under Notification No. 163/78-C.E., dated 4-9-1978 IC engines falling under Item No. 29 of the Tariff, intended for use in the manufacture of a motor vehicle, were exempted from the whole of duty of excise leviable thereon. 9. IC engines were classifiable under Item No. 29 of the Tariff, and were excisable goods. Item No. 29 covere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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