Exemption to parts of tractors – Board clarifies
Tractors are exempted, what about parts? As per Notification No. 6/2002-CE and 6/2006-Central Excise,
Parts, used within the factory of production for manufacture of goods of heading 8701 parts, falling under any chapter, used within the factory of production for manufacture of goods of heading 8701 are exempted.
Some doubts have been expressed as to whether parts falling under Chapters other than 87, when used within the factory of production for manufacture of goods of heading 8701 are eligible for the exemption.
Board clarifies that
++ goods falling under any Chapter, so long as they are parts of goods of heading 8701, will be covered by the said notifications subject to fulfillment of other conditions prescribed in the said notifications.
++ For example, IC Engines, when used within the factory of production for manufacture of tractors falling under heading 8701, will be classifiable under Chapter 84, and will be covered by the said notifications subject to fulfillment of other conditions.
CIRCULAR NO. , Dated: November 16, 2006