1996 (1) TMI 185 - AT - Customs

Summary

Issues:
Interpretation of Notification No. 28/90-Cus. regarding the availability of benefits for imports of Lactose (Sugar of Milk).

Detailed Analysis:

1. Facts and Interpretation by Collector of Customs:
The appellants imported Lactose and claimed benefits under Notification No. 28/90-Cus. The Collector of Customs held that the key issue was interpreting the words 'lactose of a kind used in homoeopathic medicines.' The Collector concluded that the benefit of the notification was not available to the appellants despite the goods meeting the standards of the Homoeopathic Pharmacopoeia of India.

2. Appellant's Argument:
The appellants argued that they had produced a certificate confirming the suitability of the goods for use in homoeopathic medicines. They relied on precedents like Asian Trading Agency v. Collector of Customs and State of Haryana v. Dalmia Dadri Cement Ltd. to support their case. The appellants contended that the notification did not require proof of actual use and that the goods being 'intended for use' sufficed. They also highlighted the classification of 'Lactose' under 'Drugs' in the Import Policy.

3. Respondent's Submission:
The respondent's representative emphasized that the crux of the matter was interpreting the phrase 'of a kind used in.' It was argued that 'Lactose' had multiple uses beyond homoeopathic medicines, making it ineligible for the notification's benefits based on the requirement of linking the exemption with the actual use of the goods.

4. Tribunal's Decision and Interpretation of Notification:
The Tribunal analyzed the phrase 'of a kind used in' in detail. It noted that the term 'of a kind' broadened the scope of 'used in,' indicating that the use in homoeopathic medicines was just one of several uses. The Tribunal concluded that the notification did not explicitly include conditions of actual user or end-use certificate. Therefore, the benefit of the notification could not be denied to the appellants. Consequently, the impugned order was set aside, and all three appeals were allowed, with the appellants entitled to consequential relief as per the law.

In conclusion, the Tribunal's decision clarified the interpretation of Notification No. 28/90-Cus. regarding the availability of benefits for imports of Lactose (Sugar of Milk). The judgment emphasized that the notification did not impose conditions of actual use or end-use certificate, and the use in homoeopathic medicines was just one of several uses, allowing the appellants to claim the benefits under the notification.