Exemption from Central Excise Duty to parts falling under any Chapter, when used within the factory of production for manufacture of goods of heading 8701 – regarding
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Exemption for parts used in tractor manufacture extends to components classified outside Chapter 87 when used within the factory. The circular clarifies that goods excluded by Note 2(e) of Section XVII retain their original chapter classification (for example, internal combustion engines in Chapter 84) and are not reclassified under Chapter 87; however, notifications exempt 'parts, falling under any chapter,' used within the factory of production for manufacture of tractors under the tractor heading, so such components remain eligible for the exemption subject to the other conditions of those notifications.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exemption for parts used in tractor manufacture extends to components classified outside Chapter 87 when used within the factory.
The circular clarifies that goods excluded by Note 2(e) of Section XVII retain their original chapter classification (for example, internal combustion engines in Chapter 84) and are not reclassified under Chapter 87; however, notifications exempt "parts, falling under any chapter," used within the factory of production for manufacture of tractors under the tractor heading, so such components remain eligible for the exemption subject to the other conditions of those notifications.
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