2001 (1) TMI 271 - AT - Central Excise

CEGAT dismisses appeal for concessional duty rate on replacement compressor parts under Notification No. 45/88.

The appeal was dismissed by CEGAT, New Delhi as the appellant's request for concessional rate of duty for a replacement compressor was denied under ... Concessional rate of duty - parts or accessories for installation of refrigerating and airconditioning plant in a cold storage - replacement or repair and maintenance exclusion - interpretation of Notification No. 45/88 dated 1-3-1988Parts or accessories for installation of refrigerating and airconditioning plant in a cold storage - replacement or repair and maintenance exclusion - concessional rate of duty - interpretation of Notification No. 45/88 dated 1-3-1988 - Whether a compressor supplied as a replacement for repair or maintenance of an existing refrigerating/airconditioning plant is eligible for concessional rate of duty under Notification No. 45/88 dated 1-3-1988. - HELD THAT: - The Tribunal examined the scope of Notification No. 45/88 dated 1-3-1988 and held that the concessional rate is confined to parts or accessories that are used in the installation of refrigerating and airconditioning plant in a cold storage. Parts required for maintenance or as replacements for an existing plant are categorically different from parts used at the time of installation and do not fall within the notification's ambit. The authorities below had found that the appellant sought the concessional rate for compressors to be utilised as replacements in repair/maintenance of an existing airconditioning plant; the Tribunal found no infirmity in that factual and legal conclusion and agreed that such replacement parts are excluded from the benefit of the notification. [Paras 2, 3]Replacement compressors supplied for repair or maintenance of an existing plant are not eligible for concessional rate under Notification No. 45/88 dated 1-3-1988; appeal dismissed.Final Conclusion: The appeal is dismissed for lack of merit; the concession under Notification No. 45/88 cannot be extended to parts supplied as replacements for repair or maintenance of an existing refrigerating/airconditioning plant. The appeal was dismissed by the Appellate Tribunal CEGAT, New Delhi as the appellant's request for concessional rate of duty for a replacement compressor was denied under Notification No. 45/88. The tribunal ruled that parts for repair or maintenance of an existing plant do not qualify for the concessional rate under the notification.