1997 (11) TMI 259 - AT - Customs

Summary

Issues:
- Interpretation of Notification No. 77/89-Cus regarding concessional rate of duty for imported power supply units.
- Determination of whether the power supply unit is an integral part of the Plasma Deposition System for duty exemption.
- Assessment of the power supply unit separately from the main equipment.

Analysis:
1. The case involved a dispute regarding the benefit of concessional rate of duty for power supply units imported independently under Notification No. 77/89-Cus. The Collector (Appeals) had initially ruled against the appellants, stating that the power supply unit was not eligible for the benefit as it was not imported along with the main equipment.

2. The appellants imported a Plasma Deposition System and claimed duty exemption for the power supply unit under the said notification. The Assistant Collector and the Collector (Appeals) both held that the power supply unit was to be assessed separately as it was not imported along with the main equipment, leading to the denial of the duty benefit.

3. The appellants argued that the power supply unit was an integral part of the Plasma Deposition System, even though it was not supplied with the original equipment. They contended that the weight difference between the power supply unit and other items, along with evidence from the manufacturer's technical literature, supported their claim for duty exemption.

4. The respondent, represented by the SDR, contended that since the goods were examined before clearance and no objection was raised at that time, the subsequent actions of the appellants were irrelevant. The SDR supported the findings of the lower authorities and requested the appeal to be rejected.

5. Upon considering the submissions, the Tribunal analyzed whether the power supply unit was supplied with the main equipment based on the examination report and evidence presented. The Tribunal noted that the appellants did not raise any objection regarding the shortage of the power supply unit at the time of clearance, and therefore, their subsequent arguments were deemed inconsequential.

6. The Tribunal concluded that the power supply unit, even if used as equipment for the Plasma Deposition System, could be imported separately and did not qualify as part of the system if imported independently. Consequently, the Tribunal upheld the impugned order, rejecting the appeal based on the assessment of the power supply unit as a distinct item from the main equipment.