Exemption for granite quarrying inputs denied where spares, tyres and tubes were not treated as consumables and tools.

Button bits, excavator spares, tyres and tubes were considered against exemption entries for "consumables and tools" under Notifications No. 58/2000-Customs and No. 37/2000-Central Excise, both issued for granite quarrying. The commentary explains that the notifications listed permissible items separately, and the residual category for consumables and tools could not extend to parts and accessories on the facts found. It also notes that a prior appellate order had already distinguished the notifications relied on by the assessee and had granted relief only for other items. The disputed items were therefore treated as outside the exemption as consumables and tools.

---

---

Issues: (i) Whether button bits, spares for excavators, tyres and tubes were entitled to exemption under Notification No. 58/2000-Customs dated 08.05.2000 and Notification No. 37/2000-Central Excise dated 08.05.2000 as consumables and tools.

Analysis: The disputed items were claimed against the entry for consumables and tools in the relevant exemption notification. The notification was specific to granite quarrying and listed permissible items separately, with the residual entry covering only consumables and tools. Parts and accessories such as button bits, excavator spares, tyres and tubes could not be treated as consumables on the facts found. The prior appellate order had already distinguished the cited notifications relied upon by the assessee and had allowed relief only for other items.

Conclusion: The disputed items were not eligible for exemption as consumables and tools, and the denial of benefit was upheld in favour of Revenue.

---