9911796707
|
Home
Issues:
1. Classification of imported components for paper making machinery. 2. Claim of partial exemption from basic Customs Duty and CVD under specific Notifications. 3. Denial of exemption from Auxiliary duty under a particular Notification. 4. Interpretation of Notification No. 207/87 for exemption eligibility. 5. Comparison between Notification No. 155/86 and Notification No. 156/86 for duty exemption. 6. Legal entitlement to claim benefit under Notification No. 156/86. 7. Relevance of specified Notifications in the Table annexed to Notification No. 207/87 for exemption eligibility. 8. Impact of the judgment in the case of Collector of Customs, Bombay v. Bharat Heavy Electricals Ltd. on the present case. Analysis: The appeal before the Appellate Tribunal CEGAT, New Delhi concerned the classification and exemption claims related to imported components for paper making machinery. The appellants sought partial exemption from basic Customs Duty and CVD under specific Notifications, including Notification No. 155/86 and Notification No. 59/87. However, they were denied exemption from Auxiliary duty under Notification No. 207/87 due to the absence of specific Notifications in the Table annexed to that Notification. During the arguments, the appellants contended that they were legally entitled to claim exemption under Notification No. 156/86, which was specified in the Table annexed to Notification No. 207/87. They highlighted that the choice of Notification was based on the comparative benefits offered. The Tribunal noted that Notification No. 156/86 exempted paper making machinery and component parts from Customs Duty without any conditions, making the appellants eligible for this exemption. The Tribunal emphasized that the eligibility for exemption under Notification No. 207/87 depended on the classification of goods under specified Notifications in the Table annexed to that Notification. Despite the appellants opting for Notification No. 155/86 due to lower duty rates, they were legally entitled to claim benefits under Notification No. 156/86 as well, as it was specified in the Table annexed to Notification No. 207/87. Referring to the judgment in the case of Collector of Customs, Bombay v. Bharat Heavy Electricals Ltd., the Tribunal highlighted the interpretation of notifications for granting exemptions based on the class of goods rather than specific applications. The judgment clarified that the purpose of Notifications was to ensure equal treatment of parts and whole articles concerning duty exemptions. Consequently, the Tribunal set aside the impugned order and allowed the appeal, affirming the appellants' entitlement to exemption under Notification No. 156/86 as specified in the Table annexed to Notification No. 207/87.
|
