9911796707
TMI Blog1994 (1) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... lared the goods as classifiable under Tariff Heading 8421.99 as parts of R.O. Membrane System (Water Treatment Plants). The appellants also claimed the assessment of the goods at the concessional rate of duty in terms of Notification No. 155/86-Cus., dated 1-3-1986. The Assistant Collector observed that the goods in question being in running length could not be treated as `parts for R.O. Membrane System. He held that goods being `raw materials were not eligible for exemption under Notification No. 155/86-Cus., dated 1-3-1986. Being aggrieved by the order passed by the Assistant Collector, the appellants filed an appeal before the Collector (Appeals) who allowed the appeal on the ground that the disputed goods in running length could be ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He submitted that the order passed by the Collector (Appeals) was not sustainable since in interpreting the term parts in the relevant notification he had overlooked the requirement that exemption notifications have to be interpreted strictly according to the actual words used therein. In support of his contentions he cited the following case law :- 1. Sakthi Sugars Limited, Coimbatore v. Union of India and Others, 1983 (12) E.L.T. 484 (Mad.) 2. Union of India v. Wood Papers Ltd., 1990 (47) E.L.T. 500 (S.C). 3. Vikrant Tyres v. C.C.E. Bangalore, 1988 (38) E.L.T. 301 (Trib.). 3. Appearing on behalf of the respondents, Shri P.M. Dave, the Learned Advocate raised the preliminary point that the appeal was not maintainable since in C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted his stand that the goods being covered by the prescribed certificate issued by the D.G.T.D. have to be deemed as parts eligible for exemption under Notification No. 155/86. In support of his contentions he cited the following decisions : Collector of C.E., Bombay v. Kiran Spinning Mills - 1988 (34) E.L.T. 5 (S.C.); and Straw Board Mfg. Co. Ltd. v. Collector, CE - 1990 (48) E.L.T. 109 (Trib.). 4. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen that the only questions that arise for consideration in this case are whether (1) the imported goods which were in running length and not cut to size or ready for fitment as component part of any article or machinery could be de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted for the purpose of setting up for the assembly or manufacture of specified articles falling under Chapter 84 or 85. - In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notifications of the Government of India in the Ministry of Finance (Department of Revenue) Nos. 94/86-Customs and 95/86-Customs both dated 17th February, 1986, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts parts required for the purpose of initial setting up, or for the assembly or manufacture, of any article specified in column (2) of the Table hereto annexed, when imported into India and proved to the satisfaction of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s :- material (often in natural state) that serves as the starting point of a manufacturing or technical process : that out which something is made or makable or may develop. 7. On a plain reading of the dictionary meaning of the terms part and raw material it follows that whereas a part which along with others makes up or is a constituent of something has necessarily to be in a state in which it can be used or fitted in the system of which it constitutes a part. On the other hand, raw material would be the material which through a manufacturing or technical process is transformed into finished goods. On these consideration, in our view, 1600 yds. of Membrane Support Substrate - Polyster Cloth and 512 yds. of Product Carrier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assembly or manufacture of any of the articles specified in Column (2) of the Notification. It has been held by the Bombay High Court in the case of Bharat Cottage Industries v. Union of India, reported in 1992 (59) E.L.T. 30 (Bom.) that every word used in an exemption notification has to be given effect to. Since we have concurred with the Assistant Collector s finding that in respect of the imported goods, the primary requirement laid down in Notification No. 155/86 that they should be `parts was not satisfied, we hold that the contention of the respondents that the goods in question were eligible for exemption since they were covered by a certificate issued by the D.G.T.D. as required by the condition of notification, has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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