Excise exclusion for agricultural implements did not cover parts until later amendment, leaving them taxable under the residuary entry.

Parts of non-power operated agricultural implements were not covered by Notification No. 144/75-C.E. during 30 April 1975 to 3 February 1978, because the exclusion of agricultural implements did not automatically extend to their parts. The reasoning was that an item and its parts are not interchangeable for excise purposes, and express exemption language must be applied according to its terms. The later amendment in Notification No. 23/78, which specifically added "parts thereof," confirmed that the earlier notification did not exclude such parts from Tariff Item 68. They therefore remained within the residuary entry and were liable to excise duty until the amendment took effect.

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Issues: Whether parts of non-power operated agricultural implements were excluded from Tariff Item 68 of the First Schedule to the Central Excises and Salt Act, 1944 during the period from 30 April 1975 to 3 February 1978.

Analysis: Notification No. 144/75-C.E. excluded agricultural implements, subject to specified exceptions, from Tariff Item 68, but it did not expressly refer to parts thereof. The Court held that an item and its parts are not automatically interchangeable for excise purposes, and that what is expressly exempted or excluded must be given effect according to its terms. The later Notification No. 23/78 specifically added "parts thereof" to the exclusion, which showed that prior to that amendment parts of non-power operated agricultural implements were not of the residuary entry. Since such parts were not otherwise specifically provided for, they remained within Tariff Item 68 and were liable to duty until 3 February 1978.

Conclusion: The parts of non-power operated agricultural implements were not excluded from Tariff Item 68 for the relevant period and were chargeable to excise duty. The challenge failed and the authorities' view was sustained.

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