1999 (4) TMI 149 - AT - Customs

Summary

Issues Involved:
1. Duty demand on non-declared items.
2. Eligibility for duty concession under Notification No. 89/91-Cus.
3. Applicability of Interpretative Rule 2(a) of the Customs Tariff Act, 1975.
4. Validity of the certificate from the Ministry of Non-conventional Energy Sources.
5. Alternative claims for duty exemption under Notification No. 90/91-Cus. and Notification No. 205/88-C.E.

Summary:

1. Duty Demand on Non-Declared Items:
The appellants did not contest the duty demand on 33 non-declared items, amounting to Rs. 10,68,921/-, which was confirmed and paid based on provisional assessment. The Tribunal confirmed this duty demand as the matter was not pressed by the appellants.

2. Eligibility for Duty Concession under Notification No. 89/91-Cus.:
The appellants imported parts of Wind Operated Electric Generators (WOEG) and sought exemption under Notification No. 89/91-Cus. The Customs authorities denied this, alleging that the appellants imported complete WOEGs in knocked down condition. The Tribunal held that the import of Nacelle and other items, even in assembled form, did not constitute a complete WOEG as they lacked the Tower and Foundation. Therefore, the imported goods were eligible for duty concession under Notification No. 89/91-Cus.

3. Applicability of Interpretative Rule 2(a) of the Customs Tariff Act, 1975:
The Tribunal found that Rule 2(a) of the Customs Tariff Act, 1975, which includes incomplete or unfinished articles having the essential character of the complete article, could not be applied to the exemption Notification No. 89/91-Cus. The imported items did not constitute a complete WOEG without the Tower and Foundation, and thus, Rule 2(a) was not relevant in this context.

4. Validity of the Certificate from the Ministry of Non-conventional Energy Sources:
The appellants produced a certificate from the Principal Scientific Officer, Ministry of Non-conventional Energy Sources, certifying the components as eligible under Notification No. 89/91-Cus. The Department rejected this certificate, arguing that the consignment was imported in assembled condition. The Tribunal held that the certificate was wrongly rejected and that the appellants fulfilled the conditions of Notification No. 89/91-Cus., entitling them to the duty concession.

5. Alternative Claims for Duty Exemption under Notification No. 90/91-Cus. and Notification No. 205/88-C.E.:
The Tribunal did not find it necessary to address the alternative claims under Notification No. 90/91-Cus. and Notification No. 205/88-C.E., as the appeal was allowed based on the eligibility under Notification No. 89/91-Cus.

Conclusion:
The appeal was allowed, setting aside the duty demand of Rs. 3,62,28,903/- with consequential benefits to the appellants, except for the confirmed duty demand of Rs. 10,68,921/- on non-declared items.