1998 (11) TMI 196 - AT - Customs

Cold rolled coils further worked out is covered by Entry against Serial No. 105 of Notification No. 11/97-Cus.

Summary

Issues: Interpretation of Notification No. 11/97-Cus regarding the eligibility for exemption of imported goods.

Analysis:
1. The judgment by the Appellate Tribunal CEGAT, New Delhi involved 12 appeals concerning the interpretation of Notification No. 11/97-Cus, dated 1-3-1997. The Commissioner of Customs (Appeals) had denied the appellants the benefit of the Notification, leading to the appeals.

2. The appellants sought clearance of "Pre-Painted Aluminium Zinc Alloy Coated Sheets in Coil" under various Bills of Entry. Initially, the goods were allowed clearance under the Notification. However, the Department later claimed the goods were not eligible for exemption, resulting in demands for additional charges. The authorities upheld this decision.

3. The Collector (Appeals) ruled that since the appellants had imported "Cold Rolled Coils" which were further worked, they were not covered by the exemption. The Commissioner emphasized that no additional information should be considered while interpreting a notification, citing a Tribunal decision in Vikrant Tyres v. Commissioner of Central Excise.

4. The appellants argued that the absence of qualifying words against S. No. 105 of the Notification indicated no intention to restrict the exemption to Cold Rolled Coils that were not further worked. They referenced legal precedents and other notifications to support their interpretation.

5. The Respondent Collector reiterated that the goods in question had been further worked, making them ineligible for the exemption under S. No. 105 of the Notification, which specifically covered "Cold Rolled Coils" without further processing.

6. The Tribunal examined the entries under S. No. 105 and S. No. 114, noting the absence of qualifying words against S. No. 105. They agreed with the appellants' argument that if the legislature intended to restrict the exemption to unprocessed Cold Rolled Coils, they would have included qualifying words as seen in other entries.

7. Consequently, the Tribunal allowed all 12 appeals, overturning the impugned orders and providing relief to the appellants. The Bank Guarantee executed by the appellants was to be discharged in light of the decision.