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Issues:
Interpretation of Customs Notification No. 11/97-Cus. regarding the eligibility of benefit for flavouring extracts (ginger ale) with 63.2% alcoholic content. Analysis: The appeal before the Appellate Tribunal CESTAT, Mumbai stemmed from a dispute concerning the denial of benefits under Notification No. 11/97-Cus. to the appellants for flavouring extracts (ginger ale) due to the alcoholic content of 63.2% in the imported goods. The Commissioner of Customs (A), Mumbai had upheld the adjudication order rejecting the benefit based on the exclusion clause for compound alcoholic preparations exceeding 0.5% volume at 20 Degrees C. Despite the absence of representation from the appellants, the Tribunal considered the Revenue's argument that the determination of alcoholic content in the imported product was crucial for extending the Notification's benefit. The Tribunal disagreed with the importer's stance that the alcoholic strength of the end-product manufactured in India should be considered for eligibility, emphasizing that the Notification's language applied to the imported products themselves, not the beverages manufactured from them. Furthermore, the Tribunal noted that both lower authorities had analyzed the Notification's wording and concluded that the phrase "of an alcoholic strength by volume exceeding 0.5%" pertained to the imported products, not the beverages to be produced subsequently. Consequently, the Tribunal upheld the impugned order directing the assessment of goods under the basic duty of customs without the benefit of the Notification, thereby dismissing the appeal. The judgment underscores the importance of interpreting customs notifications strictly in accordance with their language and clarifies that eligibility for benefits is determined based on the characteristics of the imported goods rather than the end-products to be manufactured domestically.
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