1990 (7) TMI 235 - AT - Customs

Summary

Issues:
1. Applicability of Customs Notification No. 196/76 to imported Cement GR. Y-353563/S.
2. Rejection of refund application by Assistant Collector of Customs.
3. Examination of supplier's technical literature by Collector of Customs & Central Excise (Appeals).
4. Interpretation of whether the imported material is of special quality for use in aircraft.
5. Submission of evidence by both parties regarding the nature and intended use of the imported material.

Analysis:
The appellants imported Cement GR. Y-353563/S, also known as 'Cement BSL-203', from British Aerospace, England, claiming the benefit of Customs Notification No. 196/76. The Assistant Collector of Customs rejected their refund application due to lack of substantiation. The Collector of Customs & Central Excise (Appeals) examined the supplier's technical literature and the DTD & P Air Certificate from the Ministry of Defence. It was observed that the imported cement must be of special quality for aircraft use to qualify under the notification.

The Purchase Manager for the appellants argued that the imported material was specifically made for Jaguar aircraft and met the criteria for aircraft quality as per the Ministry of Defence certificate. The appellants provided additional evidence, including a technical write-up confirming the exclusive use of the material for aircraft production programs. The Departmental Representative contended that the material's general usability for others disqualified it from the notification's benefit.

The Tribunal analyzed the evidence presented by both parties. The question at hand was whether the imported material met the criteria of being of special quality for aircraft use as per Notification No. 196/76. The Ministry of Defence certificate and the technical write-up supported the appellants' claim that the cement was exclusively intended for aircraft production programs. The instruction sheet, which lacked explicit mention of aircraft quality, was deemed merely instructional and not determinative of the material's special quality for aircraft use.

Ultimately, the Tribunal found in favor of the appellants, ruling that the imported cement qualified for the benefit under Notification No. 196/76. The Department failed to provide evidence contradicting the appellants' submissions, leading to the allowance of the appeal with consequential relief granted to the appellants.