9911796707
TMI Blog1997 (8) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ndents M/s. Elcaps Capacitors Ltd. The respondents had imported various items of machinery for the initial setting up of industrial unit for the manufacture of electronic items in their plant in the State of Madhya Pradesh. They had registered themselves for the benefit of assessment under Heading No. 98.01 of the Schedule to the Customs Tariff Act, (sic). The imports were affected and the benefit of assessment under Heading No. 98.01 of the Tariff read with Notification No. 315/83-Cus., dated 26-11-1983 as amended was extended. At the time of final tally, the Revenue raised objection that the benefit of Notification No. 315/83-Cus. was not available to the spare parts and while such spare parts were eligible for the benefit of assessment u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, auxiliary equipment (including those required for research and development purposes, testing and quality control), as well as all components (whether finished or not) or raw materials for the manufacture of the aforesaid items and their components, required for the initial setting up of a unit, or the substantial expansion of an existing unit, of a specified : (1) industrial plant, (2) irrigation project, (3) power project, (4) mining project, (5) project for the exploration for oil or other minerals, and (6) such other projects as the Central Government may, having regard to the economic development of the country notify in the Official ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ector (Appeals) that spare parts imported by them were required for initial setting up and trial of the machine. We find that the argument of the respondents had been summarised in the Appellate Order in para 11 which is as under : 11. In the Grounds of Appeal, the Appellants have stated that spare parts imported by them, were required for initial setting up and trial of the machine, and not for maintenance of plant and machinery. The spare parts imported by them, were the integral parts of the complete production facility, without which they could not have started operating the plant and machinery. The spares in question, were invoiced separately, with a view to make a clear distinction and quantitative verification, at the time of cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order-in-appeal passed by the Collector (Appeals) are extracted below : 24. On plain reading of both the notifications, I do not find that there is any exclusion, for the alleged maintenance spares, mentioned therein. So long as the maintenance spares are not excluded, from the purview of Notification No. 315 of 1983, specifically, they would automatically get covered, therein. There is no question of reading the description of a notification, with the description of the article mentioned under a Heading. Because if that be the case, then there is no description, of initial setting up or expansion, mentioned under Notification No. 132 of 1985 either. So for one purpose, if we extend the benefit of notification to the goods imported, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation of an exemption notification which enlarges the scope of the Notification is not permissible. In this connection, the Notification No. 315/83-Cus. is extracted below : Exemption to goods falling under Heading 98.01. - 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 notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 234/83-Cus., dated the 18th August, 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 ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the scheme of the Notification. 9. Ld. DR also submitted that there was no question of reading the description of the Notification with the description of the article mentioned under the heading. He submitted that if the Notification is read independently then the spare parts are not covered by that Notification. We find that the goods which are classifiable under Heading No. 98.01 are covered by this Notification. We consider that this observation of the ld. Collector (Appeals) in the context of the Notification before us is not correct and that the Notification had to be read in the context of Heading 98.01 which we have already referred to as widely worded in a way different from other headings in the Tariff inasmuch as it covers v ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
