TMI Blog2023 (5) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ised Representative relied on this decision of Devilog Systems (I) Ltd. vs. Collector of Central Excise, Bangalore [ 1996 (10) TMI 195 - CEGAT, NEW DELHI ]. In the said case distinction between the part and consumable has been made holding that The value of parts without which the machine cannot function as such has to be included in the assessable value of the machine. There may be accessories which are not necessary for the functioning of the machine but which enable the machine to provide scope for additional functions and which are not compulsorily sold to all buyers of the machine and are sold only at the option of the buyers. Such parts cannot be regarded as integral part of the machine and their value cannot be added to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not applicable to the instant case. 6. He pointed out that exemption is not for parts of solar cell but parts consumed for manufacture of solar cell . He pointed out that the word consumed implies that something has to lose its identity. He pointed out that silver conductor paste is used on the solar cell and it loses its independent identity and, therefore, it becomes part of the final product. 7. He relied on the decision of the Tribunal in the case Solker Industries Limited vs. Commissioner of Customs, Chennai [2007 (219) ELT 732], wherein it was held EVA which is imported and consumed in the manufacture of solar module should be treated as part consumed for the manufacture of solar cell. He pointed out that EVA, just like s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs (Import) Mumbai vs. Dilip Kumar Company [2018 (361) ELT 577 (SC)] was not available. He pointed out that the decision in the case of Solker Industries clearly points out that there is an ambiguity in the Notification and it extends benefit of ambiguity to importer. He pointed out the in such circumstances in the light of the decision of Hon ble Apex Court in the case of Dilip Kumar Company the benefit of notification cannot be extended to the appellant. He further pointed out that the goods silver conductor paste is not in the nature of parts and, therefore, the interpretation of word consumed in itself is not sufficient to treat silver conductor paste as parts . He pointed out that the word consumed also means that to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory of production of such parts for the manufacture of goods specified at Sl Nos. 1 to 17 above . Learned Commissioner (Appeals) observed that the goods imported are consumed/ used in the production not of parts but of the finished goods viz. solar photovoltaic module . Obviously parts consumed within the factory of production of such parts were misunderstood as parts consumed in the production of such parts . To consume something in its own manufacture does not make sense. Consequently, the view taken by the lower authorities cannot be accepted as logical. Such a view is not justice-oriented either as it is consistent with legislative intent. A provision such as Sl No. 18 of the Table annexed to Notification No. 205/88-CE, apparently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Systems (I) Ltd. vs. Collector of Central Excise, Bangalore [1997 (89) ELT (Tri.-Del.]. In the said case distinction between the part and consumable has been made in the following manner. 8. What are the principles deducible from the above decisions? One has to look into the description of the machine furnished in the appropriate tariff entry. If the description of the machine is such that it takes in the items giving rise to the dispute, the items must necessarily be regarded as integral part of the machine and duty payable on the machine would be the duty calculated on the assessable value of the machine inclusive of the value of such items. Doubt may arise if the tariff description does not provide the key to the disputed question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be supplied by the manufacturer of the machine. This is different from genuine cases of manufacture and clearance of incomplete machines where the manufacturer has no obligation to and does not arrange supplies of the particular part. The value of parts without which the machine cannot function as such has to be included in the assessable value of the machine. There may be accessories which are not necessary for the functioning of the machine but which enable the machine to provide scope for additional functions and which are not compulsorily sold to all buyers of the machine and are sold only at the option of the buyers. Such parts cannot be regarded as integral part of the machine and their value cannot be added to the assessable value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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