Aircraft component classification supports customs exemption for a compressor used in a Ground Power Unit.

The customs exemption under Notification No. 23/98-Cus. was treated as available to an imported compressor used in a Ground Power Unit because the component could be regarded as part of an aircraft for the notification. The Tribunal relied on the fact that the same Bench's earlier view on this classification had already been carried in appeal and the civil appeal was dismissed by the Supreme Court. On that basis, the Revenue's objection that a compressor forming part of a Ground Power Unit could not qualify as an aircraft part was rejected, and the assessee retained the benefit of the exemption.

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Issues: Whether the benefit of Notification No. 23/98-Cus. dated 2-6-1998 was admissible to the imported compressor as a part of Ground Power Unit and, therefore, as a part of aircraft.

Analysis: The Tribunal noted that the earlier view of the same Bench, on which the departmental challenge was based, had already been carried in appeal and the civil appeal stood dismissed by the Supreme Court. In that circumstance, the objection that a compressor forming part of a Ground Power Unit could not be treated as part of an aeroplane could not be accepted.

Conclusion: The exemption under Notification No. 23/98-Cus. was held admissible, and the Revenue's challenge failed.

Final Conclusion: The appeal was rejected, and the assessee retained the benefit of customs exemption on the imported compressor.

Ratio Decidendi: Where the higher court has upheld the exemption-linked characterization of components as parts of aircraft, the same classification applies to the imported component for the purpose of the customs exemption notification.

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