1987 (7) TMI 476 - AT - Customs

Summary

Issues:
1. Claim of benefit under Notification No. 395/76 for imported Engineering Parts
2. Rejection of claim for Springs valve and CV duty by the Assistant Collector
3. Appeal before the Appellate Collector of Customs and subsequent appeal before the Tribunal
4. Arguments presented by both parties before the Tribunal
5. Consideration of Government of India's decision and persuasive value
6. Decision on the grant of benefit under Notification No. 395/76 and levy of CV duty

Analysis:

The case involved the claim of benefit under Notification No. 395/76 for imported Engineering Parts by Kirloskar Cummins Ltd. The appellant imported Valves, Spring valves, Rotator, and Insert valve, claiming concessional duty rates for setting up diesel engines. The Assistant Collector allowed the claim for some parts but rejected it for Springs valve and CV duty. The appellant's appeals were also dismissed by the Appellate Collector, leading to an appeal before the Tribunal.

During the Tribunal hearing, the appellant's representative reiterated the claim for benefit under Notification 395/76 and cited a previous Government of India judgment supporting their position. The representative argued against the levy of CV duty, highlighting the import date being before March 1, 1979, and requested the appeal's acceptance.

On the other hand, the Departmental Representative maintained their stance from previous orders but accepted the Government of India's decision regarding Notification No. 395/76, leaving the decision to the Tribunal. The representative acknowledged the persuasive value of the Government of India's decision but emphasized it not being binding on the Tribunal.

After considering the arguments from both sides and examining the case's circumstances, the Tribunal found merit in the appellant's arguments. The Tribunal acknowledged the persuasive value of the Government of India's decision in the appellant's case and decided in favor of granting the benefit under Notification No. 395/76. The Tribunal noted that while not binding, the Government of India's decision was compelling, and no contrary judgments were presented.

Regarding the levy of CV duty, the Tribunal observed that it was not applicable under Notification No. 395/76 for imports before March 1, 1979. Consequently, the Tribunal set aside the previous order, allowed the appeal, and directed the Revenue authorities to implement the decision accordingly.