1987 (2) TMI 247 - AT - Central Excise

Summary

Issues:
Classification of imported goods under different tariff headings, eligibility for concessional assessment under specific notifications, applicability of auxiliary duty exemption, correctness of Appellate Collector's order.

Analysis:
The appellants imported goods classified under heading 90.24(1) and paid duty at 40% plus 5%. They later sought a refund, claiming the goods should be classified under Heading 84.11(1) for concessional assessment under Notification No. 35/79-Cus. The Assistant Collector rejected the claim due to missing documents. The Appellate Collector allowed the appeal based on the evidence of end use, granting the benefit of the notification.

The Government issued a Show Cause Notice questioning the Appellate Collector's decision, arguing that both headings attracted the same duty rate, so the concession under Notification 35/79 was not applicable. The respondents contended that the goods were entitled to the concessional assessment under the said notification and Notification 53/79.

During the appeal before the Tribunal, the revenue argued that the Appellate Collector wrongly allowed the concession under Notification 35/79 as the duty rates were the same for both headings. The respondents maintained their eligibility for the concessional assessment under the notification, citing a previous Tribunal decision supporting their position.

The Tribunal considered both parties' arguments and the previous decision cited by the respondents. The Tribunal upheld the view that if an article is exempt from basic customs duty in the Tariff and also under an exemption notification, the exemption from auxiliary duty applies. As the goods were entitled to the benefit of Notification 35/79, the appellants had the right to claim the notification's application, especially when it led to further benefits under Notification 53/79-Cus. The Tribunal found no error in the Appellate Collector's decision and dismissed the appeal, affirming the correctness of the concession granted.

In conclusion, the Tribunal upheld the Appellate Collector's decision to allow the concession under Notification 35/79, emphasizing the appellants' right to claim the notification's benefits despite similar duty rates under different headings. The Tribunal found no mistake in the Collector's order and dismissed the appeal accordingly.