1997 (10) TMI 150 - AT - Customs

Housings and Covers for transmitters, positioners, recorders, indicators, etc., being parts are eligible for exemption under Notification No. 69/86-Cus

Summary

Issues: Eligibility of goods for exemption under Notification No. 69/86-Cus.

In this case, the appeal was filed by M/s. Eacom's Controls (India) Ltd. regarding the eligibility of imported goods, specifically "Housing and Covers," for exemption under Notification No. 69/86-Cus. The goods were imported without claiming the benefit of the exemption initially, and a refund claim was later filed. The dispute arose as the Asstt. Collector of Customs classified the goods under a different sub-heading, rejecting the refund claim. The Collector, Customs (Appeals) also dismissed the appeal, stating that the goods were parts and not accessories as required by the notification.

Upon review, the Appellate Tribunal analyzed the relevant exemption Notification No. 69/86-Cus. It was noted that the notification covered both parts and accessories under specific sub-headings. The Tribunal disagreed with the Collector, Customs (Appeals) and held that the parts, including the "housing and covers," were indeed covered by the notification. The Tribunal set aside the Order-in-Appeal and allowed the appeal, directing that any refund should be subject to the law of unjust enrichment as per the Supreme Court's ruling in Mafatlal Industries Ltd. case.

Overall, the Tribunal found that the goods imported by M/s. Eacom's Controls (India) Ltd. were eligible for exemption under Notification No. 69/86-Cus. despite being classified as parts. The decision emphasized the inclusion of both parts and accessories in the relevant entries of the notification, leading to the allowance of the appeal and potential refund, subject to the law of unjust enrichment.