9911796707
TMI Blog1986 (3) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice and the relative Bills of Entry as Components/Sub-assemblies for agricultural tractors. These were assessed to duty by the Custom House extending the benefit of Customs Notification 200/79. This Notification exempts components required for manufacture, inter alia, of Tractors from so much of the duty as in excess of 25% subject to certain conditions. The Custom House also was doubtful initially whether the items could be imported under OGL, if considered as having the essential characteristics of complete engine because diesel engines are covered under Serial No. 407 of Appendix 5 and not allowed for import under OGL. A clarification was sought from the DGTD by the Custom House who opined that in view of a large number of addition of parts involved, the goods cannot be held as having the essential character of complete engine, hence the Customs allowed clearance under OGL as components. M/s. TAFE preferred a refund claim on the ground that the goods are classifiable as incomplete engine having essential character of complete engine and as such, eligible for concessional assessment under Notification 341/76. This Notification exempted goods specified therein against specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. He further observed that even if they are considered as component parts of diesel engines, they would still be eligible for the concession under Notification 341/76. He referred to Serial No. 120 of the Table to the Notification 341/76 which allowed the same concessional duty to parts of diesel engine but, however, indicated the Heading as 84.08 which covers other engines and motors. There was an amendment to the Notification 341/76 by Notification 17-Cus., dated 16-2-82 by which Tariff Heading 84.08 against Serial No. 120 was deleted. The Collector (Appeals) held that this showed that rectification was made by the amending notification making parts of I.C. piston engines also eligible' for concession. Hence, by giving a retrospective effect of this rectification of an error, according to the Appellate Order, the goods would still be eligible for the concession under Notification 341/76. 2. In the other appeal where M/s. TAFE are the appellants against the order of the Collector (Appeals) dated 28-12-82, the Collector (Appeals) had held that the description in the notification is specific for internal combustion piston engines which does not include parts and that on strict i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chemicals' case laying down that the Customs authorities and the licensing authorities are operating in different fields. The counsel stated that they had been importing the goods from July 79 to March 81 and all along, they had claimed concession under Notification 341/76 which had been denied and they had paid duty under protest. He pointed out that even the Show Cause Notice refers to the goods imported as having essential character of an engine. They have imported 9 specified parts in assembled condition described as engine assemblies and in the light of Rule 2(a) of the Rules for Interpretation of Customs Tariff, the imported goods are complete engines but having the essential characteristics thereof. Evidence has also been led before the Appellate Collector in support of this. The goods as imported have assumed the character of a complete engine. The counsel referred to the Treaty of 1967 between the Govt. of India, UAR and Yugoslavia and stated that Notification 69 dated 15-6-68 was issued in pursuance of this Treaty. With the change over to Customs Tariff Act 1975, Notification 341/76 was issued to continue the concessions extended under the Treaty but, according to the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reful consideration to the submissions made by the learned SDR and the learned counsel. In this case the Customs authority had initially issued Show Cause Notice to M/s. TAFE considering that the goods imported had the essential character of diesel engines and as such could not be imported under OGL. However, on obtaining a clarification from the DGTD that the goods imported cannot be so considered, the proceedings were dropped. It is also clear that para 199(3) of the Import Policy 1980-81 laid down that clarification in such matters would be given by DGTD as the competent authority. Hence the Customs House had correctly relied upon it in dropping the proceedings. The argument of M/s. TAFE is that rules of Interpretation of the Customs Tariff Schedule will apply to clearance of goods under the Import Policy as per para 201 of the Policy. But a reading of that para, which begins with "Save as above", would show that where in the earlier paras authorities competent to give clarification had been specified, policy interpretation was not dependent on the interpretative rules of the Customs Tariff Schedule, and as per para 199(3), DGTD was the competent authority for giving clarificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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