Customs exemption for imported components confirmed except for the fuel injection pump plunger, based on functional classification.

The exemption under Notification No. 69/87-Cus applied to the imported items in Item No. 3 of the Bill of Entry, except the plunger for the fuel injection pump. The record showed that the lower authorities had treated all the items as fuel injection pump parts without properly examining the importer's evidence. On the material available, only the plunger was a fuel injection pump component, while the remaining items formed part of the diesel generating set or other engine assemblies. The denial of exemption to those non-pump items could not therefore be sustained, and the order was set aside to that extent.

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Issues: Whether, on the facts, all the imported items in Item No. 3 of the Bill of Entry except the plunger for fuel injection pump were parts of the fuel injection pump and therefore outside the benefit of Notification No. 69/87-Cus.

Analysis: The appellate record showed that the lower authorities had treated every item in Item No. 3 as a part of the fuel injection pump without examining the evidence placed by the importer. The material on record, including the write-up describing the function and use of each item, indicated that only the plunger was a part of the fuel injection pump, while the remaining items were components of the diesel generating set or other engine assemblies and not of the fuel injection pump. Since the disputed goods other than the plunger were not fuel injection pump parts, the denial of the exemption benefit to those items could not be sustained.

Conclusion: The benefit of Notification No. 69/87-Cus. was available to all the items in Item No. 3 of the Bill of Entry except the plunger for fuel injection pump, and the impugned order was set aside to that extent.

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