Exemption for Defence vehicle components required factual examination of imported axle assemblies before refund eligibility could be decided.

Notification No. 155/94-Cus. exempted spare parts, accessories, jigs, tools, testing equipment, components, special raw materials and half wroughts for armoured and specialised vehicles peculiar to the Defence Services. The record lacked a finding explaining why the imported front axle shaft assemblies could not qualify within that description, particularly where the importer was a defence vehicle factory manufacturing and supplying vehicles for the Defence Services. The exemption question therefore had to be examined on the facts by the original authority, and the refund claim was remitted for de novo consideration and determination of eligibility under the notification.

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Issues: Whether the imported parts were eligible for exemption under Notification No. 155/94-Cus. dated 13-7-1994 as components for specialised vehicles peculiar to the Defence Services, and whether the matter required remand for fresh adjudication.

Analysis: The notification exempted spare parts, accessories, jigs, tools, testing equipment, components, special raw materials and half wroughts for armoured and specialised vehicles peculiar to the Defence Services. The record did not contain a finding explaining why the imported front axle shaft assemblies could not fall within that description. As the imports were made by a defence vehicle factory engaged in manufacture and supply of vehicles for the Defence Services, the question of eligibility had to be examined on the facts by the original authority.

Conclusion: The matter was remitted to the original adjudicating authority for de novo consideration of the refund claim and determination of exemption eligibility under Sl. No. 4(III) of the notification.

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