Exemption for compressor parts depends on matching the specified tariff heading, not just the product description.

Crankshafts used in gas compressors for water coolers were not entitled to exemption under Notification No. 166/86-C.E. because the notification applied only to parts falling within the headings or sub-headings expressly listed in it. The goods were classifiable under Tariff Heading 84.83, and that heading was not included in the notification. The classification of the part therefore had to satisfy both the product description and the specified tariff heading requirement. The cited Apex Court decision was distinguished because the notification in that case expressly covered both the equipment and its parts.

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Issues: Whether crankshafts used in gas compressors for water coolers were entitled to exemption under Notification No. 166/86-C.E. dated 1-3-1986 when they were classifiable under Tariff Heading 84.83, a heading not listed in the notification.

Analysis: The exemption covered only those parts of gas compressors and water coolers which fell within the headings or sub-headings expressly specified in column (2) of the notification. The notification did not extend to all parts used in gas compressors, and the specific tariff classification of the goods had to satisfy the notification's heading requirement in addition to the description of the goods. Since crankshafts were admittedly classifiable under Heading 84.83, and that heading was not mentioned in the notification, the condition for exemption was not met. The reference to the Apex Court decision was held to be inapplicable because the notification there specifically extended to both the equipment and its parts.

Conclusion: The crankshafts were not eligible for exemption under the notification, and the appeal failed.

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