2016 (12) TMI 1682 - AT - Customs

Benefit of N/N. 25/99-Cus. dated 28-2-1999 - denial on the ground that as per clarification issued by TRU vide F. No. 345/40/2001-TRU dated 7-12-2001 the appellant is not entitled for the benefit of above said notification - Held that - it is clear that the appellant is entitled for the benefit of notification if they are manufacturing RF/IF transformers. Admittedly the appellant is not manufacturing the said transformers. Therefore the appellant is not entitled for such benefit of notification - appeal dismissed - decided against appellant.

Summary

Issues:
1. Entitlement to benefit of Notification No. 25/99-Cus., dated 28-2-1999 for imported copper wire used in manufacturing transformers.

Analysis:
The case involved a dispute regarding the entitlement to the benefit of Notification No. 25/99-Cus., dated 28-2-1999, concerning the import of copper wire for manufacturing transformers. The appellant claimed the benefit of the notification, while the Revenue denied it based on a clarification issued by TRU. The appellant argued that the notification allowed the benefit for enamelled copper wire used in RF/IF coils, not just transformers. They also referenced Notification No. 26/2002 to support their claim. The Revenue, however, opposed the appellant's contentions and supported the findings of the impugned order.

The tribunal examined the notification, which specified the eligible uses of the imported copper wire, including RF/IF coils or transformers. A TRU clarification dated 7-12-2001 restricted the benefit to self-soldering enamelled copper wire used specifically for RF/IF coils or transformers, excluding other types of transformers. Since the appellant was not manufacturing RF/IF transformers, they were deemed ineligible for the notification's benefit. The tribunal distinguished the appellant's reliance on previous court decisions, stating that those cases were not directly applicable to the current situation, where a TRU clarification defined the scope of Notification No. 25/1999. Consequently, the tribunal upheld the impugned order, dismissing the appellant's appeal.

In conclusion, the tribunal ruled that the appellant was not entitled to the benefit of Notification No. 25/99-Cus., as they did not manufacture the specified RF/IF transformers as required by the notification and TRU clarification. The tribunal emphasized the specific language of the notification and the TRU clarification in determining the appellant's eligibility for the duty concession. The decision highlighted the importance of aligning the actual manufacturing activities with the precise requirements outlined in customs notifications to claim benefits accurately.