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Issues:
Eligibility to Notification 128/94 for goods described as "Stud Tensioning Device." Analysis: The appeal before the Appellate Tribunal CEGAT, Mumbai concerned the eligibility of goods, specifically a "Stud Tensioning Device," for the benefit of Notification 128/94. The Assistant Commissioner had initially denied the benefit, but the Collector (Appeals) ruled in favor of the eligibility, leading to the department's appeal. The key contention revolved around whether the "Stud Tensioning Device" qualified as a material under the notification, which exempts import of materials used for the manufacture of final products. The department argued that the goods did not meet the definition of "materials" as per the explanation provided in the notification. On the other hand, the respondent contended that the device was essential for manufacturing the manhole cover and maintaining the required tension on the studs. They supported their claim with a certificate from a buyer, indicating the necessity of the device for the pre-heater. Additionally, they highlighted that no duty had been charged from the customer due to the fulfillment of export obligations. The Commissioner (Appeals) had taken a lenient view, considering the issuance of a license for the import of the device as a factor in determining its essentiality for the pre-heater. However, the Tribunal emphasized that the applicability of exemption notifications falls under the jurisdiction of customs authorities, not licensing bodies. The Tribunal stressed the need for a strict interpretation of exemption notifications, with any doubt benefiting the department. Furthermore, the Tribunal dismissed the relevance of a previous judgment cited by the Commissioner (Appeals), emphasizing that the focus should be on whether the goods fell within the defined scope of "materials" in the notification. Ultimately, the Tribunal concluded that the benefit of the notification should not have been granted, overturning the decision of the Commissioner (Appeals) and reinstating the Assistant Commissioner's order.
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