Concessional duty for cold storage plant parts is unavailable for replacement components used in maintenance of an existing installation.

Concessional duty under Notification No. 45/88 applied only to parts or accessories used in the installation of refrigerating or air-conditioning plant in a cold storage. Replacement components for maintenance of an existing plant were treated differently from parts used for initial installation. An ammonia compressor sought as a replacement for an existing cold storage plant therefore did not meet the notification's requirement of use in installation, and the claim for concessional duty was not admissible.

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Issues: Whether an ammonia compressor required as a replacement for an existing cold storage plant could avail concessional duty under Notification No. 45/88 dated 1-3-1988.

Analysis: The Notification extended concessional duty to parts or accessories used in the installation of refrigerating and air-conditioning plant in a cold storage. Parts required for maintenance of an existing plant, including replacement components, stand on a different footing from parts used for initial installation. Since the compressor was sought for replacement in an existing plant, it did not satisfy the condition of use in installation of the plant contemplated by the Notification.

Conclusion: The claim for concessional duty was not admissible and the denial of the benefit was justified.

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