1998 (9) TMI 222 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 113/81-Cus for exemption on imported goods.
2. Determination of whether imported bearings are eligible for exemption under the notification.
3. Consideration of whether the imported bearings are specific to coal briquetting presses.

Analysis:
1. The case involved the interpretation of Notification No. 113/81-Cus for granting exemption on imported goods. The issue was whether the imported bearings, part No. 32211, were eligible for exemption under the notification.
2. The original authority denied the benefit of the notification, stating that the bearings were general purpose and not specific to coal briquetting presses. However, the lower appellate authority ruled in favor of the respondents based on previous legal precedents, emphasizing that the notification did not specify any restriction on imported parts for exemption.
3. The appellate tribunal analyzed the contentions of the Revenue and found them unfounded. They observed that the notification explicitly mentioned that the parts should be used in briquetting presses for compacting cellulosic waste material. The catalogue provided by the respondents confirmed that the imported bearings were indeed parts of such presses, satisfying the terms of the notification.
4. The tribunal rejected the Revenue's argument that the bearings could be used for other purposes and machines, emphasizing that the notification did not impose any end-use condition. They concluded that the lower appellate authority's decision was legally sound and aligned with the facts of the case, dismissing the appeal of the Revenue.

In conclusion, the appellate tribunal upheld the lower appellate authority's decision, ruling that the imported bearings were eligible for exemption under Notification No. 113/81-Cus as they were intended for use in coal briquetting presses, as specified in the notification.