1997 (12) TMI 341 - AT - Customs

Summary

Issues:
Dispensation of pre-deposit of demanded amount under Notification 77/90-Cus for refractory bricks used in industrial furnace.

Analysis:
The appellants sought dispensation of pre-deposit under Notification 77/90-Cus for an amount demanded. The issue arose from an appellate order by the Commissioner of Customs (Appeals), Mumbai. The appellants filed a miscellaneous application to transfer the appeal to the South Zonal Bench. The Tribunal found the appellants covered by the terms of the order and proceeded with the appeal.

The main issue raised was whether the appellants were eligible for the benefit of Notification No. 77/90 concerning exempted rates for refractory bricks used in industrial furnaces. The appellants argued that the Tribunal's full bench decision in Jindal Strips v. CC, Bombay supported their claim. They contended that the term "component" includes spare parts used for replacement, citing various tribunal decisions and notifications to support their interpretation.

The Tribunal analyzed the meaning of "component" and "spare" parts in the context of the notifications and previous tribunal decisions. It concluded that the word "component" should be understood broadly, encompassing spare parts used for replacement. The Tribunal referred to the guidelines set by the Supreme Court and historical tariff rates to support its interpretation. Consequently, the Tribunal held that the appellants were entitled to the concessional rate of duty under the Notification for importing refractory bricks as spare parts.

The Tribunal granted dispensation of pre-deposit based on the prima facie coverage of the issue by the Tribunal's previous decision. The impugned order was set aside, and the matter was remanded for fresh consideration by the lower appellate authority in light of the Tribunal's decision. The appeal was allowed by remand for further proceedings in accordance with the Tribunal's interpretation of the Notification.

In conclusion, the Tribunal's decision clarified the interpretation of "component parts" under Notification 77/90-Cus, emphasizing the broad scope of the term to include spare parts used for replacement. The appellants were granted relief from pre-deposit and the matter was remanded for reconsideration based on the Tribunal's interpretation.