Component parts exemption does not cover spare parts imported for already installed refrigeration compressors.

Imported spare parts for already installed refrigeration compressors were treated as replacement items for maintenance, not as component parts for initial assembly or manufacture. Because Notification No. 23/77-Cus. extended concessional duty only to component parts of compressors used in refrigeration and air-conditioning equipment, the exemption was unavailable on these facts. The distinction between component parts and spares was accepted, and extra imported items could not be brought within the notification.

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Issues: Whether imported spare parts for already installed refrigeration compressors were entitled to concessional duty under Notification No. 23/77-Cus. as component parts.

Analysis: The notification granted exemption to component parts of compressors used in refrigeration and air-conditioning equipment. The imported goods were described in the invoice as spares for compressors already installed in the plant. On these facts, the goods were meant for replacement or maintenance and not for initial assembly or manufacture of the equipment. The distinction between components and spares was accepted, and imported extra items could not be treated as component parts for the purpose of the exemption.

Conclusion: The claim for concessional assessment under the notification was not available and the appeal failed.

Ratio Decidendi: A spare part imported for an already installed machine is not a component part within an exemption notification confined to component parts required for assembly or manufacture.

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