Turbine exemption extends to the full assembly, not to detachable parts, when contract supplies the turbine generator package.

An exemption for a turbine applied where the goods cleared under the customer contract were the turbine generator and associated equipment, not a detachable part of the turbine. On the accepted factual position, the factory removals constituted the turbine assembly itself. Since the relevant exemption entry covered a turbine and not parts of a turbine, the benefit was available to the respondents. The Revenue's challenge therefore failed.

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Issues: Whether the respondents were entitled to the benefit of Notification No. 57/95-C.E. dated 16-3-1995 in respect of the turbine regulator, and whether the goods cleared were only parts of a turbine or the turbine assembly itself.

Analysis: The contract with the customer was for supply of turbine generator and associated equipment, and the factual position accepted by the original authority showed that the goods removed were supplied under that contract. On that basis, the goods cleared from the factory were not a mere part of the turbine assembly but the turbine itself consisting of turbine generator and associated equipments. The exemption under S. No. 16A of the Table annexed to Notification No. 205/88-C.E., as amended, was available to a turbine and not to parts of a turbine.

Conclusion: The benefit of the notification was available to the respondents, and the Revenue's challenge failed.

Ratio Decidendi: Where the cleared goods constitute the turbine assembly itself and not a detachable part thereof, an exemption meant for a turbine extends to the assembly, but not to parts of the turbine.

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