Exemption for repair kits and packing sets upheld as components of notified blow out preventer equipment.

Repair kits and packing sets for FMC pumps were treated as components of a sub-assembly used in the blow out preventer system, and therefore fell within the exemption under Notification No. 197/76-Cus. The invoice and catalogue evidence identified the goods specifically as repair kits and packing sets for FMC pumps, supporting the finding that they were parts of the notified equipment. The objection that the exemption could not extend to a component of a component was rejected on the factual record, and the exemption benefit was held admissible.

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Issues: Whether repair kits and packing sets for FMC pumps, being parts of a sub-assembly used in the blow out preventer system, were entitled to exemption under Notification No. 197/76-Cus. dated 2nd August, 1976.

Analysis: The invoice and catalogue material showed that the imported goods were specifically identified as repair kits and packing sets for FMC pumps, and the pump assembly formed part of the blow out preventer system. The objection that the notification could not apply to a component of a component was rejected, as the factual record supported the finding that the goods were components of the notified equipment and were covered by the exemption.

Conclusion: The benefit of the exemption notification was admissible, and the Revenue's challenge failed.

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