2019 (2) TMI 1091

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....pect of electric motors vide Sl.No.264 of the Notification No.5/99 for clearance under Chapter X procedure to their sister units situated at Worli and Ahmednagar for manufacture of P.D. Pumps which were exempted from payment of duty. Show-cause notice was issued on the ground that exemption was not available to stators, rotors and Electric Shields, etc., as the final products were exempted from payment of duty. The lower authorities vide order-in-original dated 30/11/2005 has dropped the proceedings. The appellant submitted that they are filing declaration for availment of Notification No.67/95- CE dated 16/03/1995. Further, they have also availed exemption under Notification No.5/99-CE dated 28/02/1999 though it was not mentioned in the de....

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....tric motors used for the PDPs or driven pumps. PDPs will not function without the stators, rotors and end shield. Therefore, they are essential part of PDPs. It is settled law that a part of part of a machine is also a part of same machine in view of the following: (i) Mahendra Engineering Works - 1993 (67) ELT 134 (T) (ii) KSB Pumps Ltd., - 2005 (179) ELT 370 (T) (iii) Shriram Bearing Ltd., - 2001 (135) ELT 600 (T) (iv) Bansal Industries Corporation -2000 (118) ELT 119 (T) 4.1 They further contended that it is a settled position of law based on the Hon'ble Supreme Court decision in the case of Share Medical Care - 2007 (209) ELT 321 (SC) that the benefit of exemption has to be extended even if it is not claimed by the assessee. 5....