1996 (10) TMI 208 - AT - Customs

Summary

Issues: Classification of imported goods under Notification No. 69/87-Cus. and Notification No. 132/87-Cus.

In this case, the appellants imported Worm Wheels and claimed classification under CTH 9806.00 and benefit of assessment under Notification No. 69/87-Cus. The claim was rejected by the Assistant Collector and upheld by the Collector of Customs (Appeals). The main issue revolves around the interpretation of Notification No. 69/87-Cus. and Notification No. 132/87-Cus. concerning the classification of goods under CTH 8483.90 or CTH 98.06. The appellants argued that both notifications should be read harmoniously to extend the benefit of exemption to them, while the revenue contended that goods falling under Heading 84.83 are specifically excluded from Heading 98.06 by Notification No. 132/87. The Tribunal had to determine whether the impugned goods could be classified under Heading 98.06 and avail the concessional rate of duty under Notification No. 69/87.

The Tribunal analyzed Chapter Note 7(d) which excludes certain parts of machinery from Heading 98.06 unless notified by the Central Government. The Central Government, through Notification No. 132/87, specifically notified goods falling under Chapter Heading 84.83 as parts having general application and not covered under CTH 98.06. The Tribunal emphasized that exemption provisions must be construed strictly, as held in previous Supreme Court decisions, and any doubt should be resolved in favor of the State. The Tribunal rejected the appellants' argument for harmonious construction of the notifications and upheld the revenue's contention that the impugned goods cannot be classified under Heading 98.06 and are ineligible for the benefit under Notification No. 69/87. The Tribunal cited relevant case laws to support its decision and concluded that the appeal was to be rejected, upholding the impugned order.