Exemption for cycle parts extends to Chapter 73 bolts and screws used as components of cycles and cycle-rickshaws.

Bolts and screws classified under Chapter 73 and admittedly used as parts or accessories of cycles and cycle-rickshaws satisfied the description in Notification No. 62/86-C.E. The notification extended exemption to excisable goods falling within the specified chapters and covering parts and accessories of cycles and cycle-rickshaws, including Chapter 73 goods. As the goods matched both the tariff classification and the functional use contemplated by the notification, exemption was available and denial of the benefit was unsustainable.

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Issues: Whether bolts and screws, admittedly used as parts of cycles and cycle-rickshaws and classifiable under Chapter 73, were entitled to exemption under Notification No. 62/86-C.E. dated 10-2-1986.

Analysis: The Notification exempted excisable goods described as parts and accessories of cycles and cycle-rickshaws falling under the specified chapters, and its column relating to coverage included Chapter 73. The appellants did not dispute classification of the goods under Chapter 73. Since the goods were used as parts or accessories of cycles and cycle-rickshaws, they answered the description in the Notification.

Conclusion: The goods were entitled to the benefit of the Notification, and the denial of exemption was unsustainable.

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