1997 (9) TMI 537 - AT - Customs

Summary

Issues:
Interpretation of Notification No. 68/89-Cus., dated 1-3-1989 regarding exemption for bag filters imported by the respondents.

Detailed Analysis:

1. Common Question of Law:
- Both appeals involve a common question of law related to the interpretation of Notification No. 68/89-Cus., dated 1-3-1989, and are being heard together for final disposal.

2. Revenue's Argument:
- The Revenue argues that the bag filters imported are not covered under the notification as they are fiber glass filter bags and not the specific type of bag filters mentioned in the notification.
- They rely on a Board's circular stating that the exemption is granted only to bag filters, which are considered finished products and incorporate filter bags made of special fabrics to withstand high temperatures and for particle removal.

3. Respondent's Argument:
- The respondents claim that the imported bag filters are essential for pollution control purposes and are covered under the notification.
- They present a communication from the Ministry of Environment and Forest certifying the necessity of the imported goods for environmental pollution control.
- They cite previous Tribunal decisions, such as M/s. Carbon & Chemicals India Ltd. and M/s. Shriram Vinyl & Chemicals Industries, where fiber glass filter bags were considered to be covered under the notification.

4. Exemption Notification Interpretation:
- The relevant portion of Notification No. 68/89-Cus., dated 1-3-1989, exempts goods imported for safety in chemical industries or environmental pollution control from certain customs duties, subject to specific conditions.
- The notification includes a table listing various goods eligible for exemption, including bag filters with special fabrics for specific purposes.

5. Decision and Rationale:
- The Collector of Customs (Appeals) granted the benefit of exemption to the respondents based on the interpretation that fiber glass filter bags are covered under the notification.
- The Tribunal, following previous decisions, upheld this interpretation and dismissed the Revenue's appeals, finding no error in the impugned orders.

6. Conclusion:
- The Tribunal's decision affirms that the fiber glass filter bags imported by the respondents qualify as bag filters under the exemption notification, as established by previous Tribunal rulings and the communication from the Ministry of Environment and Forest.