2005 (8) TMI 499 - AT - Customs

Summary

Issues involved: Interpretation of Entry No. 67 to the Table of Notification 159/86-Cus regarding exemption for imported goods used in manufacturing cut and polished diamonds.

Analysis:
1. The case involved the eligibility of imported goods under Entry No. 67 to the Table of Notification 159/86-Cus, which provided exemption for certain machinery and parts used in cutting and polishing gemstones, including diamonds.

2. The lower authority had denied the benefit of exemption based on a previous decision and a catalogue from a trader, which distinguished between different types of pots used in diamond bruting and polishing.

3. The Tribunal analyzed a manufacturer's catalogue, which described various kinds of pots made from steel used in diamond cutting and concluded that the term "steel pots" should be interpreted broadly to encompass all types of pots made from steel in the diamond cutting and polishing industry.

4. The Tribunal disagreed with the previous decision based on the trader's catalogue and emphasized that the term "steel pots" is a generic term covering all kinds of steel pots used in diamond cutting and polishing, as supported by the lower authorities' acceptance of this understanding.

5. Citing the decision in the case of Standard Pencils Pvt. Ltd. v. CCE, the Tribunal held that all kinds of pots made from steel and used in diamond cutting and polishing should be allowed the benefit of the exemption under Notification 159/86-Cus.

6. Consequently, the Tribunal set aside the lower authority's orders and allowed the appeals, ruling in favor of the importers.