1993 (12) TMI 135 - AT - Customs

Summary

Issues:
Eligibility of Electronic repair system for exemption under Notification No. 185/76.

Analysis:
The case involved the determination of whether an Electronic repair system imported by the appellants was eligible for exemption under Notification No. 185/76 dated 2-8-1976. The goods in question were initially cleared under the mentioned notification but later a show cause notice was issued proposing a duty levy of Rs.23 lakhs as it was deemed that the goods did not qualify for the exemption. The Adjudicating authority and the lower Appellate authority both denied the benefit of the notification, citing that the goods were not covered under Article II of the Geneva Convention but under Article III. The distinction between the articles covered under Article II and Article III of the Geneva Convention was considered irrelevant for determining eligibility for the benefit of Notification No. 185/76 by the appellants. The appellants argued that the notification was not restricted to goods falling under Article II of the Convention.

The Tribunal analyzed the provisions of the Geneva Convention, specifically Article II and Article III. Article II of the Convention pertains to the exemption from import duties for samples of negligible value, while Article III deals with the temporary duty-free admission of other samples. The Tribunal noted that Notification 185/76 exempts samples of goods from import duties in accordance with the International Convention dated 7th November, 1952, without restricting it to goods under Article II of the Convention. The Tribunal held that the appellants were entitled to the benefit of the notification as the goods were permitted to be re-exported. Consequently, the demand for duty was deemed unsustainable, and the impugned order was set aside, allowing the appeal with consequential relief.