TaxTMI 
TaxTMI 
1997 (11) TMI 161
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....nufacture of stationary type of IC engines [which were classifiable under erstwhile T.I. 29(ii) during the period 28-2-1986 to 31-3-1987] should not be recovered and penalty should not be imposed under Rule 173Q read with the relevant Sections/Rules. The Department alleged that the appellants had incorrectly availed exemption under Notification No. 217/85, dated 8-10-1985 as amended by Notification No. 79/86, dated 10-2-1986 (effective from 28-2-1986) inasmuch as the appellants had used component parts such as pistons, piston rings, gudgeon pins, engine valves, gaskets, nozzles and nozzle holders, circlips and filter elements for the manufacture of stationary IC engines classifiable under Chapter sub-heading 8408.00. It was alleged that since the said component parts were not allowed the benefits of exemption under Notification No. 75/86, the exemption had been wrongly availed. According to the SCN, Notification No. 75/86 applied only to parts and accessories used on motor vehicles, tractors and trailers. 4. When the matter was adjudicated the Additional Collector by the impugned order dismissed the present appellants' contention that Notification No. 75/86 did not debar th....
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.... manufactured by the appellants were of two types, (i) for use as prime mover for transporting vehicles and (ii) stationary type of IC engines operated with diesel oil. Both these types of engines were classifiable under T.I. 29. On 10-2-1986 a further Notification (Notification No. 75/86) was issued superseding Notification No. 249/82 by which exemption was given to specified parts and accessories falling under Chapter 68, 73, 84, 85 or 87 of the Schedule to the Central Excises and Salt Act, 1944 if such goods were intended to be used as OE parts in the manufacture of IC engines falling under Chapter 84. The Notification also provided that when the use of such parts was made in a place other than the factory of production, Chapter X procedure has to be followed. Consequent on the issue of Notification No. 75/86, the appellants obtained a fresh licence. 6. Shri Lodha strongly contended that in terms of Notification No. 75/86 parts intended to be used as OE parts in the manufacture of IC engines falling under Chapter 84 of the CETA, 1985 was clearly eligible for exemption. The only condition in the Notification was that where the use of the parts was in a factory other than ....
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....e 196 dealing with duty leviable on excisable goods. He also drew attention to the fact that Rule 196 occurs in Chapter X dealing with the remission of duty on goods in certain circumstances. In view thereof the time limit under Section 11A would not be applicable in the present case. He relied on IFFCO v. CCE, 1989 (41) E.L.T. 474 in support of his contention. 8. We have considered the rival submissions. The question relates to the interpretation of Notification No. 75/86 which read as follows :- THE TABLE Sr. No. Description of Goods (1) (2)      1. Brake linings; 2. Clutch facings; 3. Engine valves; 4. Gaskets; 5. Nozzles and nozzle holders; 6. Pistons; 7. Piston rings; 8. Gudgeon pins; 9. Circlips; 10. Shock absorbers; 11. Sparking plugs; 12. Thinwalled bearings; 13. Tie rod ends; 14. Electric horns; 15. Filter elements, inserts and cartridges : Provided that - (i) it is proved to the satisfaction of an officer not below the rank of an Assistant Collector of Central Excise that the said goods are intended to be used as original equ....
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....he Notification contains no mention of IC engines but only of motors vehicles, tractors and trailers which means that the parts and accessories mentioned in the Tables have necessarily to be parts and accessories of motor vehicles, tractors, (including agricultural tractors) and trailers which are all vehicles and are meant to be mobile. Since the purpose of the proviso is to carve something out of the main provision and not to add something to what has been covered by the main provision, it cannot be deemed to include IC engines which are stationary. Item (a) covers only those IC engines which become part of motor vehicles, tractors or trailers. Stationary IC engines which are not part of motor vehicles, tractors or trailers cannot, therefore, be said to be covered by the exemption Notification. In the instant case the appellants have claimed exemption for stationary IC engines operated with diesel oil. In view of the foregoing we hold that stationary IC engines will not be eligible for the exemption. As regards the ld. Counsel's submission that there cannot be any intendment in fiscal statutes, we agree with him that no intention beyond the meaning of clear words can be inferred ....