1987 (8) TMI 121 - AT - Customs

Summary

Issues Involved:
1. Eligibility of imported aeroplane tyres for exemption under Notification No. 99/81-Cus.
2. Classification of aeroplane tyres as spare parts of aeroplanes.
3. Interpretation of relevant customs notifications and tariff chapters.

Detailed Analysis:

1. Eligibility of Imported Aeroplane Tyres for Exemption Under Notification No. 99/81-Cus.
The primary issue in this case is whether imported aeroplane tyres qualify for exemption under Notification No. 99/81-Cus. The Tribunal had conflicting decisions from different benches on this matter. One bench concluded that tyres are essential parts of aeroplanes and thus eligible for the exemption, while another bench ruled that tyres are not parts of aeroplanes and are not eligible for the exemption. The present bench was constituted to resolve this conflict.

2. Classification of Aeroplane Tyres as Spare Parts of Aeroplanes
The learned Counsel for the importers argued that aeroplane tyres are spare parts of aeroplanes, as they are essential for the functioning of the aircraft. He supported his argument with a certificate from the Controller of Civil Aviation and various dictionary definitions of "servicing." The Counsel emphasized that servicing includes replacing worn parts, which would naturally include tyres. The Counsel for the department, however, argued that tyres should be classified under Chapter 40 of the Customs Tariff Act, which covers rubber tyres, and not as aeroplane parts under Chapter 88.

3. Interpretation of Relevant Customs Notifications and Tariff Chapters
The Tribunal examined Notification No. 145/77-Cus. and Notification No. 99/81-Cus. Notification No. 145/77-Cus. explicitly lists rubber tyres and tubes used exclusively for aeroplanes separately from aeroplane parts. Notification No. 99/81-Cus. exempts "aeroplane spare parts" without specifying any tariff chapter. The Counsel for the department argued that this implies tyres should not be included under Notification No. 99/81-Cus. The Tribunal noted that the law makers avoided specifying tariff chapters to ensure broad applicability of the exemptions.

The Tribunal concluded that the interpretation of "spare parts" should be based on whether the item is essential for the functioning of the aeroplane. The Tribunal disagreed with the previous decision that aeroplane tyres are not aeroplane parts, noting that tyres are crucial for both take-off and landing. The Tribunal emphasized that the proper question is whether the item is covered by the notification's language, not whether the coverage is too broad.

Conclusion:
The Tribunal allowed the appeal, concluding that aeroplane tyres are indeed spare parts of aeroplanes and are eligible for exemption under Notification No. 99/81-Cus. The Tribunal found that the tyres meet the provisions of the notification as they are imported for servicing the aeroplanes, and there was no evidence to contradict this claim. The appeal was thus allowed, granting the exemption for the imported aeroplane tyres.