2010 (11) TMI 417 - AT - Customs

Notification No. 133/2000-Cus., dated 17-10-2000 - CLRI scientist, who issued both the certificates dated 8-5-2001 and 22-6-2001, has stated in cross-examination that the sample submitted by the party and which was certified by him to satisfy the norms for finished leather, was different from the samples submitted by the department in respect of which he issued the second certificate dated 22-6-2001 to the effect that the samples did not satisfy the norms for finished leather due to absence of protective coating - the scientist has also confirmed in his cross-examination that the product in question was not finished leather as it failed to satisfy the norms of the Public Notice for the specified category Goat Nappa Upper - Decided against the assessee

Summary

Issues: Eligibility for benefit under Notification No. 133/2000-Cus.

Analysis:
1. Issue of Eligibility for Benefit: The appeals revolve around the eligibility of the assessees for the benefit of Notification No. 133/2000-Cus., dated 17-10-2000. The authorities disallowed the benefit under S.No. 3 of the notification due to non-compliance with the terms specified in a Public Notice of the Ministry of Commerce. The contention was that 'Nappa Goat Leather' did not meet the specified norms for finished leather, particularly the absence of a protective coating. The appellants argued that a certificate dated 8-5-2001 attested to the goods satisfying the finished leather norms. However, discrepancies arose as the scientist who issued the certificate mentioned that the samples differed, leading to conflicting certifications. Despite the appellants' reliance on a note to the definition of 'manufacturing process,' the absence of protective coating rendered the goods ineligible for the benefit.

2. Interpretation of Norms: The discussion delved into the interpretation of the norms for finished leather and the specific requirements outlined in the Public Notice. The scientist's confirmation during cross-examination that the product did not meet the norms for 'Goat Nappa Upper' highlighted the deficiency in protective coating, crucial for categorizing the goods as finished leather. The application of note 3 to the definition of 'manufacturing process' was considered insufficient to override the absence of protective coating, emphasizing that the note addressed deficiencies in degree rather than total absence.

3. Judgment and Conclusion: The Tribunal rejected the contention that the exported goods constituted finished leather, thereby upholding the impugned orders and dismissing the appeals. The decision was based on the conclusive evidence regarding the failure to meet the specified norms for finished leather, particularly the absence of protective coating, which rendered the goods ineligible for the benefit under the notification. The judgment emphasized the importance of strict adherence to the prescribed requirements for availing such benefits, highlighting the significance of meeting the specified criteria to qualify for concessions or exemptions under relevant notifications.