1997 (9) TMI 253

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.... of duty under G.P.-I No. 227, dated 24-1-1987. Subsequently, however, they filed refund claim amounting to Rs. 65,482.40 in respect of 200 pieces of pumps which they claimed were exempted under Notification No. 217/85, dated 8-10-1985 as amended by the Notification No. 79/86-C.E., dated 10-2-1986. The only mistake committed was that they did not follow the Chapter X procedure. In respect of 180 Pumps they did not file refund claim since M/s. Mahindra & Mahindra Ltd. had availed of Modvat credit benefit. In respect of 200 pumps, however, no credit was taken since the finished goods were exempted. The claim was rejected by the Assistant Collector and Collector (Appeals). 3. We have heard both sides. Notification No. 217/85-C.E. grants ....

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.... as under : "In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts components parts of diesel oil operated; internal combustion engines other than engine valves, gaskets, nozzles and nozzle holders, pistons, piston rings, gudgeon pins, circlips and filter elements or inserted or cartridges and falling under Chapter 84 or 85 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and intended for use in the manufacture of diesel oil operated internal combusion engines, from the whole of the duty of excise leviable thereon under section 3 of the said Act : Provided that where such use is elsewhere than in the factory of production of such components ....