F . NO . 154/3/98 -CX . 4 Government of India Ministry of Finance Department of Revenue Central Board of Exci… — THE CENTRAL EXCISE ACT, 1944

F . NO . 154/3/98 -CX . 4 Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi , the 10 th February 2000 Subject: Goods falling under H . No . 86 . 01 to 86 . 06 -Notification No . 5/99 -CE [SL . No . 266]-clarification on Some doubts have been expressed whether parts falling under Chapters other than 86 of goods falling under heading 86 . 01 to 86 . 06 when within the factory in the manufacture of goods falling under heading 86 . 01 to 86 . 01 will be eligible for the exemption under Notification No . 5/99 -CE dated 28 . 2 . 99 (SL . No . 266) 2 . As far as classification of the goods falling under Chapter 86 is concerned , it will be governed by notes (2) & (3) of Section XVII and for the classification purposes the goods excluded by these notes will not be classifiable as parts under Chapter 86 . However , the notification No . 8/96 dated 23 . 7 . 96 and subsequent notification No . 4/97 -CE and the present notification No . 5/99 -CE exempts parts falling under any Chapter of goods falling under heading No . 86 . 01 to 86 . 01 used within the factory of production in the manufacture of goods falling under heading No . 86 . 01 to 86 . 06 . In view of this specific provision , the goods falling under Chapters other than 86 , but being parts of goods falling under heading No . 86 . 01 to 86 . 06 will also be covered by these notifications subject to fulfilment of other conditions prescribed in the said notifications . For example , IC Engines and DG Sets Power Packs may be classifiable under Chapter 84 & 85 respectively , but when these are used as parts of diesel locomotive falling under heading No . 02 , these will be covered by notification No . 5/99 -CE dated (SL . No . 266) subject to fulfilment of other conditio