TaxTMI 
TaxTMI 
1996 (10) TMI 282
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....s a capacitor which is specifically covered by Heading 85.32. He has held that when there is a tie, classification is preferred under a specific Entry 85.32 is also to be preferred being a later entry, in terms of the interpretation rules. He has noted that since it is not denied that the items are electrical capacitors, the benefit of exemption Notification No. 67/86-C.E. will not be applicable because it is not classified as part of electric motors falling under Heading 85.03. The appellants in this appeal are contending that the Notification No. 67/86, dated 10-2-1986 exempts Electric Motors and parts of Electric Motors on the condition that such motors or such parts are used in the factory of production as component parts in the manufac....
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....r Running Capacitor. 2. We have heard Shri V.G. Kumar, the learned Advocate for the appellant and Shri S.N. Ojha, the learned DR for the Revenue. 3. The learned Advocate argued on the basis of the grounds made out in the appeal memo and also relied on the judgment rendered in the case of Pan Asia Commercial Enterprises and Another v. Union of India and Another as reported in 1986 (25) E.L.T. 508. 4. The learned DR submitted that the capacitor classified under 85.32 is not mentioned in the Notification and therefore, the Collector has rightly rejected their plea for grant of exemption. It is his submission that only parts of the electric motors falling under 85.02 are required to be considered and not capacitors falli....
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.... been classifiable under Chapter 85.32. It is the contention of the appellants that these capacitors are classifiable as parts suitable for [use] solely or principally with machines of Heading 85.01 or 85.02 under Chapter Heading 8503. Heading 8503 refers to electric motors and generators. Therefore, it is their contention that the classification adopted by the lower authorities under 85.02 is also not correct and that the item should be classifiable under 85.03 as parts used solely or principally with electric motors or generators. While interpreting the Notification independently, we notice that these electric capacitors are `parts', which are used in the factory of production as component parts in the manufacture of electric motors. On a....
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....ous other custom houses have been granting the benefit in respect of all the items. In the case of Unival Surgical Traders v. Collector of Customs as reported in 1988 (37) E.L.T. 58, the Tribunal took such a view and held that in such circumstances, the benefit cannot be denied to the importers. 8. In the case of Bharat Earth Movers Ltd. (supra) the Tribunal took the view that the term `parts of any article' and the word `article' have to be read disjunctively and has further held that the `part' may fall under any heading and as long as article falls under the listed heading, the benefit is required to be extended. It is further held that in the phrase "parts of any articles" there will be two commodities : (1) the article ....