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TMI Blog2013 (9) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... 72338 dated 6-4-2010 valued at Rs. 54,15,148/- seeking the benefit of EPCG scheme under notification NO. 103/09-Cus dated 11-9-09 read with EPCG authorization No9. 0830004376 dated 12-3-10. The noticee sought assessment under CTH 84371000 where the applicable rate of duty is 7.5% basic + Nil CVD +2%Edn. Cess +1% Higher Edn. Cess + 4% SAD. The said tariff heading applied to "Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables". The subject goods were examined by the customs in the presence of a representative of the importer and were found to consist of -1) galvanized sheet of 3' x 10' size , with holes, in pallets; 2) nut bolts in bulk packing; 3) Angles and frames of FI sheet with holes. There was no electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not sacrosanct. It was further argued that in CBEC circular dated 6-6-95, it was clarified that goods "ovaprim" is eligible for exemption under notification No.29/94 even if the notification does not cover Chapter 38 and but covered chapter 30 since the goods are covered by the description given in the notification. Following the same logic, in the instant case, the goods satisfy the description given in the EPCG authorization and therefore the benefit should be given irrespective of the classification given in the EPCG authorization. The appellant has also relied on a few case laws in support of the above contention. 4. The ld. Addl. Commissioner AR appearing for the revenue submits that the EPCG authorization specifies not only the descr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and the importability/exportability of the goods. The alignment is at the 8 digit level. Thus specification of ITC HS code is not an empty formality but a legal necessity. 5.2 One has to keep in mind this objective while interpreting the scope of a licence issued under foreign trade policy. In the instant case, the appellant has claimed the classification under CTH 84371000 and the EPCG authorization also bears the same tariff code. 5.3 From the examination report it is evident that the goods under import consist of galvanized sheets, nut bolts, angles and frames of GI sheet and there was no electrical or mechanical or thermal equipment in the cargo. By assembly of these items, only a storage bin can be made. A storage bin merely store ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under consideration, it is obvious that CTH 7309 gives the most specific description. Therefore, the product is rightly classifiable under the said heading and not anywhere else. Since the EPCG authorization does not cover goods classifiable under CTH 7309, the benefit under the EPCG scheme cannot be extended to the impugned goods. 5.4 It will be useful to consider whether goods under importation satisfies the definition of capital goods under the Foreign Trade Policy (FTP). Capital goods have been defined in the FTP under para 9.12 and read as under:- "Capital Goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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