1991 (9) TMI 181 - AT - Customs

Summary

Issues:
Classification of imported goods for customs duty refund under Notification 239/87 - Interpretation of the term "resins" in Notification 133/86 - Applicability of amendment to goods cleared before issuance of amending notification.

Detailed Analysis:

1. Classification and Customs Duty Refund:
The case involved the appellants importing polystyrene moulding powder and subsequently filing a refund claim for the additional duty of customs (CVD) under Notification 239/87. The dispute arose regarding the classification of the goods and the eligibility for the refund based on the interpretation of the relevant notifications.

2. Interpretation of "Resins" in Notification 133/86:
The key contention was whether the term "resins" in Notification 133/86 should be interpreted to include moulding powder of such resins as per the Explanation added by Notification 239/87. The appellants argued that the amendment was clarificatory and should be applied retrospectively, citing previous CEGAT decisions to support their position.

3. Applicability of Amendment to Goods Cleared Earlier:
The central issue was whether the amendment in Notification 239/87, which added the Explanation regarding "resins," could be applied to goods cleared before the issuance of the amending notification. The Department contended that since the original notification did not cover moulding powder, the appellants were not eligible for the refund under the subsequent amendment.

4. Legal Interpretation and Decision:
The Tribunal analyzed the language of the notifications and the nature of the amendment. It noted that the Explanation in Notification 239/87 clarified the scope of the term "resins" in Notification 133/86 without introducing new conditions. Referring to a previous case involving phenolic moulding powder, the Tribunal found that the original notification implicitly covered such products. Therefore, the Tribunal held that the appellants were justified in claiming the refund even for goods cleared before the issuance of the amending notification.

5. Conclusion:
Ultimately, the Tribunal accepted the appellants' contentions, emphasizing that the amending notification was clarificatory and merely made explicit what was implicit in the original notification. As a result, the Tribunal allowed the appeal, granting the appellants the refund of the additional customs duty.