2008 (2) TMI 405 - HC - Customs

Exemption under notification no. 20/99 Cus - whether the Nylon Zipper Long Chain without slider imported by the respondent and cleared under bill of entry dated 6-12-1999 is eligible for the benefit of exemption under Customs Notification No. 20/99 dated 28-2-1999 (S. No. 294) - Sl. No. 294 of the Notification after referring the tariff Heading 56.01 96.06 or 96.07 describe the goods which are exempted from payment of customs duty as Fasteners and poly wadding materials . Thus as could be seen from the Notification any fastener and poly wadding materials which comes under the tariff Headings 56.01 96.06 96.07 are totally exempted from payment of customs duty. Exemption available.

Summary

Issues Involved:
Interpretation of Customs Notification No. 20/99 for exemption eligibility of Nylon Zipper Long Chain without slider imported.

Detailed Analysis:
The appeal before the High Court of Madras challenged the order of the Customs, Excise and Service Tax Appellate Tribunal regarding the eligibility of Nylon Zipper Long Chain without slider for exemption under Customs Notification No. 20/99. The key issue was whether the imported goods fell under the category specified for duty-free import. The Customs Act empowered the issuance of such notifications to exempt specified goods from customs duty upon importation into India.

The department contended that the imported goods did not qualify for exemption as they were only Nylon Zipper in running length without a slider for fastening. On the other hand, the Tribunal ruled in favor of the importer, leading to the appeal before the High Court. The Court examined the relevant tariff heading 96.07, which covered slide fasteners and their parts. The notification exempted goods falling under tariff headings 56.01, 96.06, and 96.07, described as "Fasteners and poly wadding materials," from customs duty, without specifying the requirement of a slider or scoop.

The Court emphasized that the notification did not mandate the presence of a slider or scoop for exemption eligibility. If the intention was to limit the exemption to fasteners with specific components, it would have been explicitly stated in the notification. Since no such qualification existed, the Court upheld the Tribunal's interpretation as correct. Therefore, the Civil Miscellaneous Appeal was dismissed, with no costs imposed.

In conclusion, the High Court of Madras affirmed the Tribunal's decision, emphasizing that the Customs Notification No. 20/99 did not necessitate fasteners to have a slider or scoop for exemption eligibility. The Court's analysis focused on the absence of any explicit requirement in the notification, leading to the dismissal of the appeal and upholding the importer's entitlement to exemption for the Nylon Zipper Long Chain without slider imported goods.