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- Refund of customs duty on imported spare parts - Interpretation of Notification No. 80/70-Cus. - Eligibility criteria for exemption under the notification Analysis: The judgment revolves around the dispute regarding the refund of customs duty on imported spare parts by the Department of Telecommunication. The imported goods were claimed to be replacements for defective battery cells supplied free of cost by foreign exporters. The Assistant Collector of Customs rejected the refund application, citing the absence of a provision in the Customs Act for refunding duty against surrendered damaged goods that were already cleared. The Appellate Collector upheld this decision, emphasizing the lack of authority to grant such refunds based on equitable considerations. The appellants then filed a revision application before the Government of India, which was subsequently transferred to the Tribunal as an appeal. The appellants argued that they were entitled to the refund under Notification No. 80/70-Cus. dated 29-8-1970. The notification exempts articles imported for replacement of defective parts under specific conditions, including that the defective articles must be private properties of the importers, and replacements must be done free of charge by the manufacturer through their agent or branch in India. During the hearing, the appellants contended that they met the criteria outlined in the notification. However, the Tribunal, after considering the arguments and documents presented, found that the imported goods did not qualify for the refund under the notification. The Tribunal highlighted that the imported goods were not private personal properties of the importers as required by the notification. Additionally, the replacement was not done free of charge by the manufacturer's agent or branch in India but directly by the foreign supplier. Consequently, the Tribunal concluded that the appellants were not entitled to the refund under Notification 80/70-Cus. and dismissed the appeal.
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