Exemption Notification 217/85 applied to engine parts, with prior Tribunal ruling followed absent any stay.

Parts of nozzle and nozzle holder used in internal combustion engines were held eligible for Exemption Notification No. 217/85. The Tribunal treated the dispute as covered by its earlier decision in the appellants' own case on the same classification and duty issue, and followed that view because the earlier decision, though challenged before the Supreme Court, had not been stayed. On that basis, the notification was applied to the goods in dispute, the impugned order was set aside, and the appeal was allowed.

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Issues: Whether the appellants were entitled to the benefit of Exemption Notification No. 217/85 in respect of parts of nozzle and nozzle holder used in internal combustion engines.

Analysis: The dispute was treated as covered by an earlier Tribunal decision in the appellants' own case on the same classification and duty issue. The earlier decision had been challenged before the Supreme Court, but no stay of its operation had been granted. In the absence of any stay, the Tribunal followed its earlier view and applied the exemption notification to the goods in dispute.

Conclusion: The appellants were entitled to the benefit of Exemption Notification No. 217/85.

Final Conclusion: The impugned order was set aside and the appeal was allowed on the footing that the goods qualified for the exemption.

Ratio Decidendi: An earlier Tribunal decision on the same issue is to be followed in the absence of a stay of its operation, and the exemption granted by the notification applies accordingly.

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