2006 (1) TMI 390 - AT - Customs

Summary

Issues:
- Interpretation of Customs Notification No. 23/98 for concessional duty rate on Fibre Glass Roving
- Determination of whether imported Fibre Glass Roving is used in the manufacture of Telecommunication Grade FRP Rods
- Assessment of processing done on the raw Fibre Glass Roving for availing notification benefits

Analysis:
The case involved the interpretation of Customs Notification No. 23/98, which provides a concessional rate of duty for Fibre Glass Roving used in the manufacture of Telecommunication Grade FRP Rods. The appellants imported Fibre Glass Roving and claimed the benefit of the notification. However, show cause notices were issued, alleging that the Roving was not used for the intended purpose. The adjudicating authority confirmed the duty demand and imposed penalties.

The appellants contended that the imported Fibre Glass Roving was used in manufacturing telecommunication overhead cables, meeting the specifications provided by the telecommunication department. They argued that the Roving was essential for strength requirements in drop wires. The Revenue, on the other hand, relied on the opinion of the Director (Telecommunication Engineering Centre) stating that the Roving was not processed to qualify as FRP.

Upon review, the Tribunal found that the imported Fibre Glass Roving was indeed used in the manufacture of telecommunication cables, meeting the specific requirements set by the telecommunication department. The Tribunal noted that the Roving was processed with resin to create solid fibre rods for optical fibre cables, which did not contain copper conductors. The specifications mentioned, including adherence to BS 3691 for E-Glass fibre roving, supported the appellants' use of the Roving for telecommunication cable manufacturing.

Conclusively, the Tribunal ruled in favor of the appellants, setting aside the impugned orders and allowing the appeals. The decision was based on the evidence presented regarding the utilization of the Fibre Glass Roving in compliance with the telecommunication department's specifications, thus entitling the appellants to the benefits of the customs notification.