2016 (8) TMI 1253 - AT - Customs

Benefit of N/N. 21/2002-Cus. - it is alleged that 9 items under dispute are of Inductive Load less than 7 Amperes though the Resistive Load is more than 7 Amperes as per Catalogue - appellant have argued that since the Inductive Load is less than 7 Amperes, they are entitled to the benefit of notification which prescribes rating upto 7 Amperes - Held that - It is seen that the Sr. No. 12 of List 26 does not specify whether the contact rating of upto 7 Amperes is of Inductive or Resistive type. In above circumstances, it would be deemed to cover all kinds of contact rating, be it Inductive or Resistive - Since the Resistive rating on the project is above 7 Amperes, they do not fall under Sr. No. 12 of List 26 of the said Notification - appeal dismissed - decided against appellant.

Summary

Issues:
Appeal against denial of benefit of Notification No. 21/2002-Cus., Sr. No. 244, List 26, Sr. No. 12.

Analysis:
The case involved an appeal by M/s. Tej Control System Pvt. Ltd. against the denial of benefits under Notification No. 21/2002-Cus., Sr. No. 244, List 26, Sr. No. 12. The appellant contended that certain items under dispute were of 'Inductive Load' less than 7 Amperes, despite having a 'Resistive Load' of more than 7 Amperes as per the Catalogue. The appellant argued that since the 'Inductive Load' was less than 7 Amperes, they were entitled to the benefit of the notification which specified a rating up to 7 Amperes.

During the proceedings, it was noted that the appellant had admitted that while the 'Resistive Load' of the items was above 7 Amperes, the 'Inductive Load' was less than 7 Amperes. The Tribunal observed that Sr. No. 12 of List 26 did not specify whether the contact rating of up to 7 Amperes was of Inductive or Resistive type. In light of this ambiguity, the Tribunal deemed it to cover all types of contact ratings, whether Inductive or Resistive. As the Resistive rating of the items in question was above 7 Amperes, they did not fall under Sr. No. 12 of List 26 of the Notification. Consequently, the appeal was rejected.

In conclusion, the Tribunal found that the appellant's claim for the benefit of the notification was not valid as the items in question had a Resistive rating above 7 Amperes, even though the Inductive load was below 7 Amperes. The decision was based on the interpretation of the notification and the understanding that the specification of contact rating up to 7 Amperes encompassed both Inductive and Resistive types. The appeal was dismissed, and the judgment was pronounced on 31-8-2016.