1988 (12) TMI 253 - AT - Customs

Summary

Issues:
- Eligibility for concessional rate of duty under Notification No. 49-Cus., dated 1-3-1978 for imported Universal Measuring Machine with accessories.

Analysis:
The case involved the appellants importing a Universal Measuring Machine with accessories, claiming eligibility for a concessional rate of duty under Notification No. 49-Cus., dated 1-3-1978. The Assistant Collector of Customs denied the benefit, a decision upheld by the Collector of Customs (Appeals), Bombay. The appellants challenged this decision before the Appellate Tribunal CEGAT, New Delhi.

The Tribunal considered the case in light of a previous decision involving a similar issue with M/s. Kinetic Engineering Ltd. The department argued that the imported machine lacked accuracy to perform all functions specified under the notification. They cited an advisory from Madras IIT regarding another instrument, "Validator 10," to support their claim that the machine's accuracy was insufficient for checking gauges and precision jigs and fixtures.

The Tribunal noted a discrepancy in the grounds for denying the benefit of the notification. While the Assistant Collector held that the imported machine required optional accessories to perform all functions, the Collector (Appeals) rejected the claim based on the machine's lack of accuracy. The appellants contended that the concept of "readout accuracy" was introduced for the first time at the appellate stage without allowing them to respond adequately, violating principles of natural justice.

Considering the lack of clarity in the Collector (Appeals)'s decision and the absence of an opportunity for the appellants to address the new ground, the Tribunal set aside the order and remanded the matter to the Assistant Collector for a fresh assessment. The Tribunal emphasized the need for a full opportunity for the Importers to present their case and directed the Assistant Collector to consider the Tribunal's decision in the M/s. Kinetic Engineering Ltd. case while reevaluating the eligibility for the concessional rate of duty.

Ultimately, the Tribunal allowed the appeal by remand, providing the Importers with a fair chance to explain their position and ensuring a comprehensive reconsideration of the case based on the principles of natural justice and relevant legal precedents.