1984 (1) TMI 215 - AT - Customs

Summary

Issues:
1. Eligibility for exemption under Notification No. 82-Cus., dated 6-8-1960 for Pistons Assembly (Complete) imported for setting up Diesel Engines used on Agricultural Tractors.
2. Refund of countervailing duty paid by the appellants.

Analysis:
1. The appeal revolved around the eligibility of the Pistons Assembly (Complete) imported by the appellants for setting up Diesel Engines used on Agricultural Tractors for exemption under Notification No. 82-Cus., dated 6-8-1960. The appellants provided D.G.T.D. Certificates certifying that the imported components were required for the manufacture of diesel engines for agricultural tractors. The components were ready for fitment and did not require further manufacturing processes. The appellants contended that all necessary conditions under the notification had been met. The Departmental Representative argued that if the components were considered parts of tractors or diesel engines, they would be assessable under a different tariff item. However, the Bench found that the components satisfied the conditions for exemption under the notification, as certified by the D.G.T.D., and granted the exemption accordingly.

2. The appellants also sought a refund of countervailing duty paid, claiming that no duty was payable under a specific tariff item. The Departmental Representative contended that the components could be used in diesel engines for motor vehicles but lacked evidence to support this claim. The Department also argued that the appellants could not claim exemption from countervailing duty at this stage as it was not raised earlier. The Bench, considering the submissions, decided to grant the exemption under the notification but did not address the claim for countervailing duty refund, stating it was not raised before and hence not dealt with in the current proceedings. The appeal was allowed concerning the exemption, providing relief to the appellants as per the judgment.

This detailed analysis outlines the key issues, arguments presented by both parties, and the final decision of the Appellate Tribunal CEGAT, New Delhi regarding the eligibility for exemption and the refund of countervailing duty in the case.