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Issues:
1. Re-assessment of imported goods for customs duty benefit under Notification No. 35/79. 2. Interpretation of Customs Tariff Act and Notification No. 35/79. 3. Application of Interpretative Rule 2(a) for classification of goods. 4. Scope of exemption notifications and use of Interpretative Rules. 5. Classification of imported goods as parts for exemption eligibility. Analysis: The case involved the appellants importing rough machined castings, Valve Cover, and Valve Chamber and seeking re-assessment for customs duty benefit under Notification No. 35/79. The Assistant Collector initially rejected the claim based on the classification under Heading 73.33/40 of the Customs Tariff Act, which did not align with the headings in the notification. The appeal to the Appellate Collector was also dismissed on the grounds of post-importation operations before fitment, leading to a revision application before the Government of India and eventual transfer to the Tribunal for appeal. During the hearing, the appellants argued that the imported goods, tailor-made for specific specifications and used in the assembly of M.W. Steam Turbine, should be classified as parts of a turbine under Interpretative Rule 2(a) of the Customs Tariff Act. However, the department representative opposed this interpretation, emphasizing that Rule 2(a) applies only to the Tariff Act and not to notifications under the Customs Act. The Tribunal considered previous judgments, including one by the Madras High Court, highlighting the need to interpret exemption notifications based on their explicit wording without expanding their scope through additional rules. Referring to the Supreme Court decision in Hansraj v. H.H. Dave and a Tribunal order, the Tribunal reiterated that notifications must be interpreted strictly based on their language without introducing external interpretations or rules. Consequently, the Tribunal rejected the appellants' argument to apply Interpretative Rule 2(a) to Notification No. 35/79 for broader exemption eligibility. Upon reviewing the notification, the Tribunal concluded that the imported goods, being semi-finished rough machined castings, did not qualify as "parts" under the notification's criteria for exemption. Therefore, the appeal was rejected based on the goods not meeting the requirements outlined in Notification No. 35/79. In a separate opinion, another Tribunal member concurred with the rejection of the appeal, emphasizing that while Interpretative Rules and Section Notes could guide exemption notification interpretation, expanding the notification's scope through additional rules, as sought by the appellants, was impermissible. The member cited a Supreme Court case to support the strict interpretation of exemption notifications based on their wording and context, ultimately aligning with the rejection of the appeal. In conclusion, the Tribunal upheld the rejection of the appeal, emphasizing the need to interpret exemption notifications strictly based on their explicit language and criteria, without applying external rules or interpretations to widen their scope beyond the stated provisions.
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