1989 (5) TMI 183 - AT - Customs

Summary

Issues:
1. Eligibility of goods for exemption from additional duty of customs under Notification No. 38/73-CE.
2. Applicability of Central Excise Notification No. 71/71 for levy of additional duty of customs.

Analysis:

Issue 1: Eligibility for Exemption under Notification No. 38/73-CE:
The Tribunal considered whether goods imported, specifically 'Acrylic Plastic Off cuts' and 'Acrypoly' acrylic sheets, were eligible for exemption from additional duty of customs under Notification No. 38/73-CE. The condition for exemption required the goods to be produced from specific materials, including methyl methacrylate monomer. The appellants provided evidence that the imported goods met this condition, supported by certificates from manufacturers. The Department argued that verification of the material used is only possible for goods produced in India, not for imported goods. The Tribunal referred to a judgment of the Madras High Court, which held that as long as the importer proves the goods were made from the specified material and the Department does not counter this evidence, the exemption applies to imported goods. The Tribunal followed this precedent and granted the exemption, concluding that the goods were eligible for exemption under Notification No. 38/73-CE.

Issue 2: Applicability of Central Excise Notification No. 71/71:
As an alternative issue, the Tribunal considered the applicability of Central Excise Notification No. 71/71 for the levy of additional duty of customs on the imported goods. However, due to the decision on the first issue regarding the exemption under Notification No. 38/73-CE, the Tribunal found it unnecessary to delve into this second issue. The Tribunal relied on the Madras High Court judgment and held that the goods were indeed eligible for exemption under Notification No. 38/73-CE, thereby dismissing the need to address the second issue.

Conclusion:
Ultimately, the Tribunal set aside the impugned order and allowed the appeals in favor of the appellants, granting them consequential relief. Additionally, the Tribunal highlighted concerns regarding the Assistant Collector's approach, noting a lack of judicial discipline in disregarding the Madras High Court judgment and recommended bringing this issue to the attention of the Central Board of Excise and Customs for appropriate action.