JUDGMENT

Y.K. Sabharwal, J.-After dismantling in their factory the existing furnaces, the appellants assembled modernized furnaces partly using imported parts, partly indigenously procured parts and partly serviceable components/parts recovered from the dismantled furnaces. In respect of imported parts used in the assembly of the furnaces, the appellants claimed benefit of Notification No.155/86-Cus dated 1st March, 1986 which provides for lower rate of duty. The Director General of Technical Development, as the competent authority under the notification, recommended the grant of lower rate of duty prescribed in the notification in respect of the imported parts. The benefit of the notification has, however, been denied to the appellants on the ground that no new furnace emerges in the assembly operation undertaken by them. The Tribunal in the order under challenge affirming the order of Collector of Customs of Appeals states:

"The furnace from which the unserviceable parts were discarded, serviceable parts were re-used along with some of the imported parts and some of the indigenous parts purchased locally, were not entirely different from the old furnace and the i