9911796707
TMI Blog2011 (3) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... including specified items classified under specified sub-headings of the tariff, namely 8544.41 and 8544.49 clearly keeps the co-axial cables classified under the heading 8544.20 out of the scope of the exempted notification - Decided in favour of revenue. - C/284/09 - 563/2011 - Dated:- 17-3-2011 - Hon'ble Ms. JYOTI BALASUNDARAM, Vice President Hon'ble Dr. CHITTARANJAN SATAPATHY, Technical Member Appearance Ms. Indira Sisupal, JDR, for the appellants Shri S. Sankara Vadivelu, Adv., for the respondents Per: Dr. Chittaranjan Satapathy, Heard both sides. 2. The issue in dispute in this case is whether the impugned goods namely co-axial cables imported by the respondents are entitled to duty exemption under Sl.No. 28 of the Customs Notification No. 25/2005-Cus. dated 01.03.2005. The original authority in his order dated 24.07.2006 has denied the exemption classifying the impugned goods under sub-heading 8544.20. The lower appellate authority under his order dated 31.03.09 has allowed the exemption leading to this appeal by the department. 3. Ms. Indira Sisupal, Ld. DR appearing for the department supports the grounds of appeal and contends as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Description of goods Standard rate Addl duty rate Condition No. 281 85 or any other chapter Parts of CNC systems 25% - 5 291 85 CNC systems 25% - - 301 85.06 Button cells 15% - - 340 8544.41 or 8544.49 Electric conductors, for a voltage not exceeding 80 V, of telecommunications 15% - - Thus it can be seen that for the purpose of de-limiting the scope of coverage of the exemption, the column no. (2) follows the following options: * The classification is irrelevant (e.g. sl.no. 281 above) * The classification requirement is at chapter level (sl.no. 291 above) * The classification requirement is at 4-digit level (sl.no. 301 above) * The classification requirement is at 6-digit level (sl.no. 340 above) The use of different options for different entries must by itself be taken to be deliberate. Hence, if the column (2) of the entry no. 340 above (which is exactly the same as the impugned entry no. 28 of the present notification No. 25/05) says 8544.41 and 8544.49, then it m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts the impugned Order-in-Appeal and states that the respondents had initially indicated the classification for the impugned goods under sub-heading 8544.49, but even at this stage they are not disputing the correct classification of the impugned goods which has been done by the original authority under sub-heading No. 8544.20. However, irrespective of the classification of the impugned goods, the respondents are entitled to the benefit of notification under the Notification No. 25/05, as the description under Sl.No. 28 to the table annexed to the said notification covers the impugned goods. He draws attention of the Bench to the description under the said Sl.No. which reads as under:- Electric conductors, for a voltage not exceeding 80 V, of a kind used for telecommunications . He states that the impugned goods are electric conductors and they are meant to carry voltage not exceeding 80V and are also a kind used for telecommunications and hence the respondents are entitled for the exemption. In support of his claim he relies on the following decisions:- 1. M/s. Jain Engineering Co. Vs. CC, Bombay 1987 (32) ELT 3 (S.C.) 2. CC Vs. M/s. AP Paper Mills Ltd. 1993 (68) ELT 583 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting such products, as was done in the case of ACE Microelectronics Pvt. Ltd. (supra), the Revenue is obviously handicapped. 6. Nevertheless, the customs tariff makes a clear distinction between various kinds of conductors under heading 8544 at the level of first sub-classification (single "dash") as follows:- 8544.10 - Winding wire 8544.20 - Co-axial cable and other co-axial electric conductors. 8544.30 - Ignition wiring sets and other wiring sets of a kind used n vehicles, aircraft or ships. 8544.40 - Other electric conductors, for a voltage not exceeding 80V. 8544.50 - Other electric conductors, for a voltage exceeding 80V but not exceeding 1000V. 8544.60 - Other electric conductors, for a voltage exceeding 1000V 8544.70 - Optical fibre cables. For some of these separate subheadings at the single dash level, there are further sub divisions at the double dash level. The exemption notification No. 25/05, under sl.no. 28 to the Table annexed, exempts electric conductors classifiable under 8544.41 and 8644.49 which are at the double dash level falling within the subheading No. 8544.40 at the single dash level. In view of the fact that the co-axial cables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the other conductors which fall for classification within the sub-heading numbers specified under column (2) would merit exemption. In another decision cited by the Ld. DR in the case of Hari Chand Shri Gopal (supra), the Hon'ble Supreme Court has held that a person who claims exemption has to establish that he is entitled to that exemption and that a provision providing for an exemption has to be construed strictly. It also says that if the exemption is subject to any conditions, the conditions have to be complied with. The present notification clearly requires the goods to fall under particular classification and also to conform to the description given, respectively under columns (2) and (3) of the Table annexed to the notification, before exemption can be allowed. The respondents having not satisfied the condition relating to the required classification under column (2) of the notification, the impugned goods cannot be allowed the exemption under the said notification No. 25/05. The decision of the Hon'ble Supreme Court in the case of M/s. Jain Engineering (supra) cited by the Ld. Counsel, relates to parts of IC engines and the context in which the said decision was rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
