TaxTMI 
TaxTMI 
1996 (11) TMI 192
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....laimed is part and parcel of the Surtronic 3P equipment and without this Recorder, any manufacturer of Bearings cannot manufacture bearings of any kind requiring high precision and high tolerance. The Customs Authorities while granting exemption under Notification 26/88, dated 1-3-1988 to main instrument, denied it to Surgraphic Recorder on the ground that it is optional and there is no evidence that it was supplied compulsorily. Collector (Appeals) upheld this order. The appellants have now come up before Tribunal against this order. 3. Arguing for the appellants, ld. Advocate submits that letters from the agent of the manufacturer make it clear that Surtronic 3P equipment comprises various items including Surgraphic Recorder without....
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.... Generally throughout the world for the bearing industry Rank Taylor Hobson offer a system for surface checking which should include all the equipment including surgraphic recorder covered by their order. Recording facility is essential part of the system and "We have offered you a complete system and separate prices for individual items such as recorder are not available". We also find that as early in May 1988, they had written to Asstt. Collector of Customs, Bombay vide letter placed at page 17 of the appeal papers, that Surgraphic Recorder is an essential part of the equipment. The relevant part of the letter of the appellant is reproduced below : "Machine Tools (India) Ltd., the Agents for Rank Taylor Hobson, U.K. advised us to impo....
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....cation of the defect with the help of this recorder. The Display Traverse Unit with Surgraphic Recorder makes the corrective action possible during manufacturing and eventually helps in production of right quality". 6. In fact, the invoice itself placed at page 19 of the appeal papers, at page 21 indicates Surtronic 3P comprising items like Standard Pick-up, Plate, Remote Start, Traverse Unit, Surgraphic recorder etc. There is no dispute about the other items which were treated as comprising the machine. There is no reason when invoice itself indicates that Surtronic 3P comprises among other items Surgraphic Recorder it should not be treated as a part of the equipment itself. The appellants admittedly have not been charged separately....