2004 (5) TMI 383 - AT - Central Excise

Acrylic fibre - Words and Phrases - Expression acrylic fibre in Notification No. 80/88-C.E.

Summary

Issues:
1. Interpretation of the term "Acrylic Fibre" in Notification No. 225/86-C.E.
2. Whether the benefit of the notification extends to Acrylic Tow and Tops.

Analysis:
1. The primary issue in this case revolves around the interpretation of the term "Acrylic Fibre" as used in Notification No. 225/86-C.E. The Commissioner (Appeals) referred to a Board Circular dated 31-5-1988 which clarified that the expression "Acrylic Fibre" encompasses not only acrylic staple fibre but also Acrylic Tow and Tops of the same material. The Circular emphasized that the term "Fibre" is generic and includes various forms such as tow, staple fibre, and tops. Additionally, the Circular highlighted that previous decisions and notifications have consistently treated Acrylic Tops and Tows as part of the broader category of "Acrylic Fibre." The Commissioner (Appeals) relied on this clarification to support the inclusion of Acrylic Tow and Tops within the ambit of the term "Acrylic Fibre."

2. The second issue pertains to whether the benefit of the notification extends to Acrylic Tow and Tops or is limited to only "acrylic fibre." The Revenue contended that the Commissioner (Appeals) erroneously allowed the benefit of set-off duty paid for Tow and Tops under Notification No. 225/86-C.E., arguing that the notification specifically mentions only "acrylic fibre." However, the Tribunal, in its analysis, upheld the decision of the Commissioner (Appeals) based on the Board Circular from 1988. The Tribunal concurred with the interpretation that Acrylic Tow and Tops fall within the scope of "Acrylic Fibre" as clarified by the Circular, thereby dismissing the Revenue's appeal.

In conclusion, the Tribunal affirmed that the term "Acrylic Fibre" in Notification No. 225/86-C.E. includes Acrylic Tow and Tops based on the authoritative interpretation provided by the Board Circular. The decision emphasizes the broad and generic nature of the term "Fibre" and the consistent treatment of Acrylic Tow and Tops within the category of Acrylic Fibre across various notifications and legal precedents. The judgment highlights the importance of interpreting statutory provisions in line with established definitions and clarifications to ensure consistency and fairness in the application of customs duties and benefits.