2007 (7) TMI 448 - AT - Customs

Summary

Issues:
1. Admissibility of benefit under Notification No. 5/99-C.E. for imported polyester fibre tips.

Analysis:
The case involved a dispute regarding the admissibility of the benefit of Notification No. 5/99-C.E. to polyester fibre tips imported by the respondents. The question was whether the benefit under this notification, which specified a nil rate of duty for ball point pens and parts thereof valued not exceeding Rs. 100 per piece, could be extended to the imported goods. The Revenue contended that the concessional rate of duty was meant for pens and parts manufactured in India, suggesting that traders like the respondents were not eligible for the benefit. However, the lower appellate authority had already determined that the value of the imported goods was below Rs. 100 per piece, making them eligible for the nil rate of duty under the notification.

The appellate tribunal noted that the Revenue's argument was unfounded as the appellant had not disputed the value assessment made by the lower authority. The tribunal emphasized that the case presented by the Revenue was peculiar, especially considering that the value of the goods was within the specified limit for the nil rate of duty. Consequently, the tribunal upheld the decision of the lower appellate authority, which had allowed the benefit of the nil rate of duty to the importer based on the value assessment of the goods. As a result, the tribunal dismissed the appeal brought by the Revenue, affirming the admissibility of the benefit under Notification No. 5/99-C.E. for the imported polyester fibre tips.

In conclusion, the judgment clarified that the benefit of a nil rate of duty under a specific notification could be extended to imported goods valued within the prescribed limit, irrespective of whether the importer was a manufacturer or a trader. The tribunal emphasized the importance of adhering to the value assessment made by the lower authority and rejected the Revenue's argument that the benefit was exclusively for domestically manufactured goods.