TMI Blog2017 (9) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, jumper switches, filtering elements for hydrogen filters etc. Evidently, parts of Membrane Electrolyser will also get notification benefit - Admittedly, the imported titanium pipes and fittings are not specially designed or created to work as integral part of the Membrane Electrolyser. They are only generic items which have been obtained to complete the functioning of the imported Membrane Electrolyser. At the most, it can be brought within the ambit of accessory, but certainly not as a part or a component. The Hon’ble Apex Court in the cases of Commissioner of Central Excise, Delhi Vs. Insulation Electrical (P) Ltd. [2008 (3) TMI 22 - Supreme court] has elucidated the meaning and scope of part and held that manufacturing of "Rail As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly. On appeal filed by the importer, Commissioner (Appeals), vide impugned order dated 17.1.2008 rejected the same. Aggrieved the appellants are before this forum. 3. Today, when the matter came up for hearing, ld. counsel Shri V.S. Manoj appearing on behalf of the appellant made oral and written submissions which can be summarized as under:- (a) Titanium Pipes and Fittings have been imported to handle brine to feed the Bi Polar Membrane Electrolyser. This is crucial since only such pipes can withstand corrosion attack of saturated brine as well as chlorinated brine at elevated temperature. (b) The supplier of Membrane Electrolyser M/s. Asahi Kasei, Japan have advised them to use titanium pipes and fittings. (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore cannot be considered to be parts of the machine which is covered under the Notification. 5. Heard both sides and gone through the case records. 6. The core issue that comes up for appellate decision is whether the impugned items can be considered as parts of the Membrane Electrolyser imported separately by the appellants, or otherwise. (a) For better understanding of the dispute, it would be useful to reproduce the relevant portion of the Notification No.21/2002-Cus (as amended) which extended duty benefit to import of Membrane Electrolyser or membranes. 285 85 or any other chapter The following goods, namely: 15 - 62 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery, required for,- (i) modernization by using membrane cell technology, of an existing caustic soda unit, or (ii) capacity expansion of an existing caustic soda unit using membrane cell technology, or (iii) setting up of a new caustic soda unit using membrane cell technology; (2) Membranes and parts thereof for replacement of worn out membranes in an industrial plant based on membrane cell technology 7. Thus entry No. 285, as amended, does indicate that the exemption thereat extends to parts thereof including secondary brine purification components, jumper switches, filtering elements for hydrogen filters etc. Evidently, parts of Membrane Electrolyser will also get notification benefit. 8. The Hon ble Apex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as part of vacuum cleaner due to special design and not capable of general use will require to be classifiable along with vacuum cleaner under Heading 8509 of CETA, 1985. This decision has also been relied upon by the appellants. However, closer analysis of the ratio laid down by the Tribunal, therein will mean, that to be considered as a part, the impugned item should not be capable of general use but will necessarily have a special design to facilitate integration and specific usage with the parent item. That certainly is not the case in this appeal. Admittedly, the imported titanium pipes and fittings are not specially designed or created to work as integral part of the Membrane Electrolyser. They are only generic items which have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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