1992 (4) TMI 136 - AT - Customs

Summary

Issues:
Jurisdiction of Special Bench 'B' or Special Bench 'A' regarding a matter involving interpretation of a notification, valuation dispute, and eligibility for exemption.

Analysis:
The judgment concerns a preliminary question of jurisdiction, specifically whether the issue falls under the purview of Special Bench 'B' or Special Bench 'A' of the Appellate Tribunal. The matter involves a question of valuation, interpretation of a notification, and eligibility for exemption, with no classification dispute at hand.

The appellant's representative argued that historically, matters involving both classification and valuation have been handled by the Special Bench dealing with classification. However, in the present case, the basic classification is not in dispute; the issue is confined to determining eligibility for exemption under Notification 70/89.

On the other hand, the respondent's representative contended that since no classification issue is involved, and only the rate of duty and a valuation dispute are at play, the matter should be outside the jurisdiction of the Special Bench dealing with classification, and should instead be addressed by Special Bench 'A'.

The Tribunal carefully considered the submissions of both parties and referred to the relevant provisions in Order No. 19(Tech)/1986 dated 15-9-1986, which delineate the jurisdiction of Special Benches. The Order specifies that matters involving both classification and valuation should be handled by the Special Bench concerned with the classification matter.

Interpreting the term 'classification' as not just limited to determining the classification of goods but also encompassing issues related to the applicability of exemption notifications, the Tribunal cited precedents to support that questions regarding exemption notifications inherently impact the rate of duty. Therefore, even if the matter involves only interpreting a notification without a classification issue, it falls within the jurisdiction of the Special Bench dealing with classification.

In conclusion, the Tribunal found no legal flaw in the appeal involving the interpretation of exemption Notification 70/89-Cus. and a valuation dispute being addressed by Special Bench 'B' concerned with classification matters, as per the President's Order dated 15-9-1986.