2001 (3) TMI 601 - AT - Customs

Benefit of exemption not available under Notification No. 20/99-Cus.- Interpretation of statutes

Summary

Issues:
Refund claim under Section 27 of the Customs Act based on exemption Notifications Nos. 73/97 and 20/99 - Interpretation of contract for construction of roads under Notification No. 20/99.

Analysis:
The appeal was filed against the Order-in-Appeal upholding the rejection of a refund claim of Rs. 7,20,346 under Section 27 of the Customs Act. The appellants imported electronic total stations and paid duty, later applying for a refund citing exemption Notifications 73/97 and 20/99. The Deputy Commissioner rejected the claim, stating the appellants did not qualify under Notification No. 73/97 as they had a consultancy contract, not a construction contract. The Commissioner (Appeals) upheld this decision, leading the appellants to appeal to the Tribunal.

Upon review, it was found that the appellants voluntarily paid the duty without claiming exemption and only applied for a refund after five months. Notification No. 20/99, in force at the time, exempted electronic total stations for topographical survey under specific conditions. The appellants did not meet the criteria of having a construction contract as required by the notification.

The Tribunal rejected the argument that the survey contract could be construed as a construction contract, emphasizing the clear language of the notification. Precedents highlighted the need for strict interpretation of exemption notifications. The appellants' contract was solely for survey purposes, not construction. The Tribunal cited legal principles to support the strict interpretation of the notification, concluding that the appellants did not satisfy the conditions for exemption under Notification No. 20/99.

The appellants' references to other cases did not alter the interpretation of the notification. The Tribunal affirmed that the appellants did not meet the conditions of the notification and rightly rejected their refund claim. The decision to dismiss the appeal was based on the clear language of the notification and the appellants' failure to qualify for exemption under the provided conditions.

In conclusion, the Tribunal upheld the decisions of the lower authorities, determining that the appellants did not meet the requirements for exemption under Notification No. 20/99. The appeal was dismissed, affirming the rejection of the refund claim.