Exemption for machine tool parts upheld where control panels and manipulators were not complete machinery and were integral components.

Control panels, controllers and parts of manipulators were treated as exempt under Notification No. 281/86 because they were not complete machinery on their own but components of machine tools used for repair, maintenance and replacement. The Tribunal followed its earlier view that items integrally connected with machine tools and not independently complete qualify as parts for exemption. The Revenue's argument that the goods were complete machinery was rejected, and the exemption was upheld.

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Issues: Whether control panels, controllers and parts of manipulators were entitled to exemption under Notification No. 281/86 as parts of machine tools and not complete machinery.

Analysis: The items in dispute were found to be not complete machinery by themselves, but parts of machine tools used for repairs and maintenance, including replacement. The reasoning followed the earlier Tribunal view that such components, when integrally connected with the machine tools and not independently complete, qualify for the exemption. The Revenue's contention that the goods were complete machinery was not accepted.

Conclusion: The goods were held eligible for exemption under Notification No. 281/86 and the appeal was rejected.

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