9911796707
TMI Blog1993 (6) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... -Cus., dated 26-11-1983. 2. The brief facts of the case are as follows : The respondents registered one contract for import of plant and machinery for initial setting up of their electronic industry and assessment was made provisional on execution of Bond and Bank guarantee. From time to time additional purchase orders were produced and registered. On or about April 1991, the Department was of the view that the benefit of Notification 315/83 which grants 35% concessional rate of duty to goods falling under Heading 98.01 CTA 1975. When imported into India for initial setting up of an industrial unit for manufacture of electronic items or for substantial expansion of such an existing industrial unit, was erroneously extended to spare part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, 1983, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods falling under Heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, for the initial setting up of an industrial unit for the manufacture of electronic items or the substantial expansion of an existing industrial unit manufacturing electronic items, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule, as is in excess of the amount calculated at the rate of 35 per cent ad valorem, subject to the condition that an officer not lower in rank than a Director in the Department of Electronics of the Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rem. Nothing contained in this notification shall affect the exemption granted under any other notification of the Government of India for the time being in force from the duty of customs specified in the said First Schedule in respect of the goods referred to in this Notification. (Notification No. 132/85-Cus., dated 19-4-1985 as amended by Notifications No. 103/86-Cus., dated 17-2-1986; No. 177/86-Cus., dated 1-3-1986; No. 104/87-Cus., dated 1-3-1987 and No. 57/89-Cus., dated 1-3-1989.)" 5. Spare parts imported are essentially procured alongwith the machines as without them, the machines cannot put into operation and the expansion of the project will not be complete. Further the Department of Electronics, Government of India, has ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a growing economy. For instance tax holiday to new units, concessional rate of tax to goods or persons for limited period or with the specific objective etc. That is why its construction, unlike charging provision, has to be tested on different touchstone. In fact an exemption provision is like an exception and on normal principle of construction or interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden or progressive approach of fiscal provisions intended to augment state revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly. Truly speaking, liberal and strict construction of an exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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