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TMI Blog2013 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed in the notification. Its absence renders the clarification made by the Central Board of Excise and Customs dated 6-12-2010 relied upon by the customs in this case, without authority of law. - In favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... teries, it is not open to the customs authorities by application of rules to include such articles. 7. Counsel for the Customs contends in this case that the petitioners are importing nothing less than dry cell batteries. It is emphasized that each of the articles which has been imported is covered by the notification dated 13-4-2007 as an assembly of those would make a whole dry cell battery. Counsel further submitted that the process involved in putting together the raw material imported by the petitioners, is minimal and what in effect they seek to achieve is the import of dry cell itself. 8. The Customs relies upon Rule 2(a) of the General Rules for the Interpretation of the First Schedule of Customs Tariff Act, 1975 which lists out general rules for the interpretation of the Schedule. It is stated that in terms the insistence upon payment of anti-dumping duty is warranted having regard to the said Rule which reads as follows : "2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, read with the amendment dated the 29th March, 2007, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under heading of the First Schedule to the said Customs Tariff Act as specified in the corresponding entry in column (2), the specification of which is specified in column (4) of the said Table, originating in the countries as specified in the corresponding entry in column (5), exported from the country as specified in the corresponding entry in column (6), and produced by the producers as specified in the corresponding entry in column (7), exported by the exporters as specified in the corresponding entry in column (8), imported into India, an anti-dumping duty which shall be equal to difference between the amount mentioned in the corresponding entry in column (9) in the currency as specified in the corresponding entry in column (11) and as per unit of measurement as specified in the corresponding entry in column (10), of the said Table, and the landed va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent of the components, imported 100 per cent of the components of a fully finished and complete goods manufactured by a foreign country. It is an admitted position that fully finished plain paper copiers were a prohibited item for import and thus the device adopted by the company in the present case was a complete fraud on the import policy itself. Apart from the above circumstances in our view the Tribunal was not right in setting aside the finding of the adjudicating authority and in taking the view that one has to look into the respective licence and not to the fact that if all the consignments covered by all the bills of entry assembled together, there will be a full and complete machinery." 13. In Phoenix International Ltd. (supra), the mode adopted by the importer, to escape higher levy of customs duty on import of shoes, was to pass off the independently imported components of shoes through two separate sister companies in their unfinished form i.e. shoes uppers for one concern and shoe soles to another concern. The question posed by the Supreme Court was as follows :- "2. The question of law that arises for determination in these civil appeals is :- Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he customs authorities no doubt rely upon para 13 of the order of the designated authority; the same reads as follows :- "13. As per claims of the Association, a number of producers in the unorganized sector also produce the subject goods and the individual size of these producers is too small. Production of these produces in unorganized sector was estimated by the domestic industry in the region of 5% of the production in the organized sector. The Authority notes that none of the producers in the unorganized sector have responded to the Authority and no published information is available with regard to production by these entities. It is also not known whether these entities undertake complete production activities, or are producing the product from semi-finished stage. Investigations at the premises of the domestic industry has shown that production of pre-mix powder is the basic manufacturing activity and once the pre-mix powder is prepared, production of the subject goods is just an assembly like operation. Therefore, it could not be established that these producers in the unorganized sector should indeed be considered as "producers" for the purpose of the present investi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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