Exemption for free replacement parts extended to damaged machine components imported to restore the original equipment's function.

Free replacement parts imported for damaged sections of previously cleared machines were treated as part of the original machine import, not as an independent import of spare parts. Because the parts were supplied to replace damaged components necessary for the main rotor spinning machines to function, the exemption notification was held to extend to those replacement supplies. The language and conditions of Notification No. 71/87-Cus. supported this interpretation, so the free replacement parts qualified for the benefit of the notification and the issue was decided in favour of the assessee.

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Issues: Whether the free replacement parts imported for the damaged sections of the previously imported machines were eligible for the benefit of Notification No. 71/87-Cus. dated 1-3-1987.

Analysis: The imported items were found to be free replacement parts of the main rotor spinning machines already cleared with the benefit of the notification. The subsequent import was not an independent import of parts as such, but replacement of damaged components necessary for the machines to function. In these circumstances, the replacement parts could not be viewed in isolation from the original machine import, and the language and conditions of the exemption notification supported extension of the benefit to such free supplies.

Conclusion: The free replacement parts were eligible for the benefit of Notification No. 71/87-Cus. dated 1-3-1987, and the issue was decided in favour of the assessee.

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