1987 (10) TMI 253 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification 197/79-C.E. regarding exemption for wires and cables.
2. Whether switch board wires qualify as over ground tele-communication wires under the notification.

Analysis:
The judgment involves the interpretation of Notification 197/79-C.E. concerning the exemption of wires and cables for tele-communication purposes. The respondents claimed a refund based on paying duty at 20% ad valorem instead of the correct 10%. The Assistant Collector rejected their claims, stating the wires were not over-ground tele-communication wires. The Collector (Appeals) Madras allowed the appeal, considering a previous Order-in-Revision interpreting the term "over ground." The dispute centered on whether switch board wires qualified as over ground tele-communication wires under the notification.

The Appellate Tribunal analyzed the language of Notification 197/79-C.E., which exempted certain wires and cables under specific circumstances. The tribunal noted that the wires in question were supplied for tele-communication purposes, connecting switch boards. The Assistant Collector's interpretation of "overhead" as above a certain height was deemed unacceptable. The tribunal emphasized that the notification excluded internal housing cables but did not restrict based on height. Referring to a similar case and the language of the notification, the tribunal concluded that switch board cables in Telephone Exchanges should be entitled to the benefits of the exemption.

The tribunal rejected the appeal, emphasizing that the notification's language did not limit the exemption based on the height at which the wires were used. The tribunal held that the switch board wires, not falling under the excluded category of internal housing cables, should be considered over ground tele-communication wires as per a strict interpretation of the notification. The judgment clarified that the term "overhead" did not necessitate a specific height requirement and that the wires in question were eligible for the exemption under the notification.

In summary, the judgment resolved the issue by interpreting the notification's language and clarifying that switch board wires used in Telephone Exchanges qualified as over ground tele-communication wires for the purpose of the exemption. The tribunal's decision was based on a strict interpretation of the notification's terms and the exclusion of internal housing cables from the specified categories eligible for exemption.