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Is Tractor Accessories Automobiles Parts or Not

(Querist) 11 June 2008 This query is : Resolved 
I am in “ Spare Parts Division” of a Tractor Manufacturer in the same premises i.e Tractor Manufacturing plant. The Tractor is exempted for the levying of excise duty on final product. But in Spare Parts division, we procure the parts from the suppliers and sell them within the packing of our company ( with the brand name of our company) charging the Excise Duty on the basis of MRP under the latest amended notification on 14/2008-C.E.(N.T.) dated 01/03/08.

We clear all the Tractor Spare Parts with charging excise duty along with the Tractor “Accessories “ also with applying the same method ( Packing and Labeling of our company).

As per the above mentioned notification “ Parts, components and assemblies of automobiles of any heading are liable to charge the excise duty on the basis of MRP.

My Question is ---
1. Are, in your view, Tractor Accessories also falls within the criteria of Parts, components and assemblies of automobiles ?, as the “Accessories” are not specifically define in the said notification.
2. If the tractor accessories are not covered under the automobile parts, can we clear them without charging the excise duty or not ?.

Pls give me valuable opinion.

Sanjay Sharma
Rajesh Kumar (Expert) 11 June 2008
The issue is basically classification of parts- goods falling under Chapter 8701 is exempt, if the spares or parts can fall under heading 8701, exemption can be claimed.
But parts fall under in their specifi heading, and hence excise duty is payable.
Sanjay Sharma (Querist) 11 June 2008
Dear Rajesh,

Thanks for clerification but the issue is not related to the chapter heading. The main issue is that as per the notification " Parts, components and assemblies of automobiles irrespective 0f any heading are chargabel to excise duty. But the word "Accessories" specifically not defined in the said notification.

I need the clerification on the point only tractor accessories are automobile parts or not ?. If this is automobile parts it means it is chargable to excise duty.

Sanjay Sharma
Guest (Expert) 11 June 2008
Accessories are diffferent from automobile parts in your case.
See the ill:
Tractor can have a covered body or tarapaulin body.

Independantly whether the tarapaulin is automobile part. No.

So accessories which aid an automobile parts are not exempted, as they have multipurpose uses.
Sanjay Sharma (Querist) 11 June 2008
As per your clerification Tractor Accessories are not exempted, hence excise duty is payable on the clearance of the same. My view is right or not ?

Sanjay Sharma

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