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Classification of imported goods for duty assessment and eligibility for exemption from auxiliary duty under Notification No. 112/87. Analysis: The appeal before the Appellate Tribunal CEGAT, New Delhi concerned the classification and duty assessment of imported goods, specifically copper moulds for continuous Billet Casting. The Collector of Customs (Appeals) had upheld the rejection of the refund claim for auxiliary duty by the Assistant Collector of Customs, citing the goods' classification under Heading 98.06. The dispute centered around the applicability of Notification No. 112/87, which exempts certain goods from auxiliary duty, including parts of casting machines under Chapter 84. The appellants argued that the goods should be covered by the exemption under Notification No. 112/87, as they were specifically classified as parts of casting machines. They relied on a Supreme Court decision that interpreted similar exemption notifications broadly to include relevant parts, even if not explicitly mentioned under the tariff heading. The Departmental Representative contended that the goods were copper mould tubes classifiable under Chapter 84, thus not falling under the exemption criteria. The Tribunal carefully considered the classification by the Custom House under sub-heading 9806.00, which was deemed to be parts of machinery falling under Chapter 84. The Tribunal noted that the goods were accepted as parts of casting machines, making them eligible for the exemption under Notification No. 112/87, despite being classified under Chapter 98.06. The Tribunal referenced the Supreme Court decision to support the broad interpretation of exemption notifications to include relevant parts, emphasizing that the intention of the notification should not be narrowly construed. In conclusion, the Tribunal set aside the Collector's decision and allowed the appeal, ruling in favor of the appellants. The imported goods were deemed eligible for exemption from auxiliary duty under Notification No. 112/87, based on their classification as parts of casting machines under Chapter 84, despite the general classification under Heading 98.06. The Tribunal emphasized the importance of interpreting exemption notifications in a manner that aligns with the clear intention of the law, rather than narrowly restricting their application based on technicalities.
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