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of <h1>Excise Duty Exemption Clarified for Parts Used in Manufacturing Tractors Under Heading 8701; Applies to Engines Too.</h1> The circular addresses the exemption from Central Excise Duty for parts used within the factory for manufacturing goods under heading 8701, such as tractors. It clarifies that parts from any chapter, including Internal Combustion Engines classified under 8407 or 8408, qualify for exemption under Notification No. 6/2002-CE and Notification No. 6/2006-CE if used in manufacturing goods of heading 8701. This exemption applies as long as other conditions in the notifications are met. The circular instructs trade and field formations to be informed and acknowledges receipt of the circular.
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