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Issues Involved:
1. Classification of imported goods as "refractory bricks" or "blocks." 2. Eligibility for exemption under Notification No. 242/76-Cus. 3. Interpretation of the term "brick" in the context of the notification. Detailed Analysis: 1. Classification of Imported Goods as "Refractory Bricks" or "Blocks": The primary issue revolves around whether the imported goods, described as "Electrocast Refractories with Zirconia Throat Well Blocks for Glass Melting Furnace," should be classified as "refractory bricks" or "blocks." The Assistant Collector initially classified these goods under Heading 6902.90 of the Customs Tariff Act, 1985, and rejected the importer's refund claim on the grounds that the goods were not refractory bricks of special shape or quality. The Collector (Appeals), however, disagreed with this finding, concluding that the imported goods were indeed refractory bricks of special shape and design, supported by technical literature and specific design notations provided by the manufacturer. The Collector (Appeals) emphasized that the benefit of Notification No. 242/76-Cus. is not limited to the initial setting up of industrial furnaces but also applies to replacements for bricks in already installed furnaces. The Collector found that the imported goods were used in the "throat" of the glass furnace, a specific part defined in ISI 4041-1987, and thus qualified as refractory bricks of special shape or design. 2. Eligibility for Exemption under Notification No. 242/76-Cus: The Collector (Appeals) ruled that the imported goods qualified for the exemption under Notification No. 242/76-Cus., which provides a concessional rate for refractory bricks of special shape or design used as component parts of industrial furnaces. The Collector found no satisfactory reason in the Assistant Collector's order to deny this benefit, noting that the imported goods were classified as refractory bricks under Chapter Heading 6902 during the initial assessment. The Collector also referenced the Tribunal's decision in the case of Alembic Glass Industries Ltd., which supported the classification of similar goods as refractory bricks entitled to the notification's benefits. 3. Interpretation of the Term "Brick": The interpretation of the term "brick" was central to the dispute. The Revenue argued that "blocks" are distinct from "bricks" and that the benefit of the notification, which refers only to bricks, cannot be extended to blocks. The respondent countered by citing various definitions, including those from the ISI, Oxford Dictionary, and Encyclopaedia Britannica, which describe a brick as a small rectangular block. The respondent also referenced a Supreme Court judgment in the case of Advance Bricks Co., which held that in the absence of a statutory definition, the common parlance meaning of the term should be accepted. The majority opinion of the Tribunal, however, sided with the Revenue's interpretation. It was noted that Heading 6902 of the Customs Tariff Act, 1975, separately mentions bricks and blocks, indicating a clear distinction between the two. The Tribunal emphasized that exemption notifications must be strictly construed, and the term "brick" should not be extended to include blocks unless explicitly stated. Separate Judgments: - Majority Opinion: The majority, comprising the Technical Members, concluded that the imported goods should not be classified as refractory bricks eligible for the exemption under Notification No. 242/76-Cus. They emphasized the clear distinction between bricks and blocks in the tariff heading and the need for strict interpretation of exemption notifications. Consequently, they set aside the Collector (Appeals)'s order and allowed the Revenue's appeal. - Dissenting Opinion: The Judicial Member disagreed, maintaining that the imported goods were refractory bricks of special shape and design and thus eligible for the exemption. He supported the Collector (Appeals)'s findings based on technical literature and common parlance definitions. Final Order: In view of the majority opinion, the impugned order was set aside, and the appeal was allowed, denying the benefit of Notification No. 242/76-Cus. to the imported goods.
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