1997 (7) TMI 317 - AT - Central Excise

Summary

Issues:
Benefit of Notification 345/86 under Sl. No. 40 for imported aluminium foils containing more than 99% aluminium.

The appeal before the Appellate Tribunal CEGAT, MADRAS centered around the interpretation of Notification 345/86 regarding the benefit extended to imported aluminium foils. The appellants sought to claim the benefit under Sl. No. 40 of the notification, which covered aluminium of purity 99% or above in various forms for specific manufacturing purposes, including capacitors and semiconductor devices. The appellant contended that since the imported foils were in the form of sheets, they should be eligible for the notification's benefit. The Chartered Accountant representing the appellant argued that the Chapter Notes under Chapter 76 and Note (d) indicated that sheets and foils were grouped together, suggesting that foils should be considered under the term 'sheet' for notification purposes.

The Tribunal considered the arguments presented by both sides. The appellant's representative referred to the definition of 'foil' as a thin sheet of metal, implying that foils should be treated as sheets for the purpose of the notification. However, the Tribunal noted that the Tariff classified foils separately under 76.07 while placing other types of sheets under 76.06, indicating a distinct treatment for foils. The Tribunal emphasized that the interpretation of terms in a notification should align with the definitions in the Tariff. In this case, the notification explicitly mentioned benefits for aluminium foils under specific entries, indicating a separate consideration for foils distinct from sheets. The Tribunal concluded that the terms 'sheet' and 'foil' were intentionally used separately in the notification, and the benefit should only apply where foils were specifically mentioned. Consequently, the Tribunal upheld the lower authority's decision to deny the appellant the benefit of the notification, as the imported foils were not intended for the specified uses outlined in the notification entries.

In summary, the Tribunal's judgment clarified that the distinction between 'sheet' and 'foil' in the Tariff and notification entries warranted separate treatment for foils, even if they were in sheet form. The Tribunal emphasized the importance of aligning the interpretation of terms in notifications with their definitions in the Tariff, ultimately leading to the dismissal of the appeal seeking the benefit under Notification 345/86 for imported aluminium foils.