- (1.) These appeals arise out of a decision of the Customs, Excise and Gold (Control) Appellate Tribunal (the Tribunal), wherein the tribunal by a majority judgment held that the respondents are entitled to the benefit of the exemption granted under Notification No. 217/85 as amended in regard to the parts of nozzle and nozzle holders used by them in the manufacture of an internal combustion engine (ICE - diesel oil operated).
(2.) Before the tribunal the issue arose in view of the stand taken by the Department that the appellant is not entitled to the benefit of the said notification because the notification in question having not exempted nozzle and nozzle holders, the respondent cannot claim the benefit of the said notification in respect of the parts of nozzle and nozzle holders on the ground that they are used in the manufacture of original equipment viz. internal combustion engines.
(3.) The Judicial Member agreed with the view of the Department that since the notification in question specifically excluded the benefit of exemption to nozzle and nozzle holders, the respondent cannot claim the said benefit in regard to the parts of such nozzle and nozzle holders even through they are used in the manufacture of diesel oil operated combustion engine, which the respondent manufactures; whereas the Technical Member in his differing order came to the conclusion that the authorities of the Department had taken an erroneous view that parts of nozzle and nozzle holders are equivalent to nozzle and nozzle holders themselves. He also held that a part of nozzle and nozzle holder would become a nozzle and nozzle holder only after a series of process of assembling involving land, labour and capital, therefore, parts of nozzle and nozzle holders cannot be equated with nozzle and nozzle holders themselves, and in view of the fact that the notification in question did not specifically exclude the parts of nozzle and nozzle holders from the benefit of exemption, the said learned Member held that the respondent is entitled to the benefit of exemption. Hence, he different from the Judicial Member.;