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TMI Blog2014 (12) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... vely consumed in the manufacture of resistor? (2) In the facts and circumstances of the case, whether the first respondent is correct in upholding the order of the adjudication authority who rejected the appellant's claim to register under the Customs (Import) of goods at concessional rate of duty for the manufacture of excisable goods) Rules, 1996, when the goods imported were indeed used in the manufacture of Ceramic cores? (3) In the facts and circumstances of the case, whether the first respondent was correct in accepting the ground 1 & 4 on the grounds of appeal of the department before the first respondent, as the submission made in the said grounds is beyond the scope of the Notification involved in the present case and introduced a new theory while interpreting the exemption notification? (4) In the facts and circumstance, whether the first respondent was correct in not giving a liberal interpretation to the exemption notification, once it is found that the substantive condition of the notification has been satisfied? (5) In the facts and circumstance, whether the first respondent was correct in setting aside the order of the first appellate authority, when the firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise, after considering the above letter dated 4.11.2003, came to the conclusion that the goods that were sought to be manufactured by the importer viz., porcelain insulator be otherwise called as ceramic insulator, but the Notification provided for concessional rate of duty for import of ball clay to be used in the manufacture of ceramic cores. The specific finding of the original authority is that no material was available to show that ceramic core can be also called as ceramic or porcelain insulator. It was also held that ceramic / porcelain indicator is not known in the market / trade parlance as ceramic core. Since the porcelain insulator to be manufactured by the appellant is not known in the market as ceramic core, concessional rate of customs duty cannot be extended to ball clay imported vide Serial No.158 of Notification No.25/99-Customs dated 26.2.99 as amended. Accordingly, he passed the following order:- ''(i) I do hereby reject the application dated 30.10.2003 of the assessees seeking registration under the Customs (Import of goods at concessional rate of duty for the manufacture of excisable goods) Rules, 1996 for the purpose of import of ball clay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification No.26/02-Customs dated 1.3.2002, the said entry reads as under:- Sl.No. Chapter Description of Imported goods Description of finished goods (1) (2) (3) (4) 158 25 Ball Clay Ceramic Cores/ Substrates for resistors 7. While adverting to the first substantial question of law, we find that the order of the Tribunal is not on a misreading of the above Notification, as the Tribunal has rightly held that the registration obtained by the appellant was for the manufacture of 'electric insulators' and not for the manufacture of 'resistors' nor they claimed that 'resistors' are the same as 'insulators'. It also held that to avail the benefit of concession under the Notification, the appellant should have claimed that the imported ball clay is to be used in the manufacture of 'ceramic cores/substrates for resistors'. Since the appellant had not claimed so, they are not entitled to the benefit of the above entry. In our view, the said findings of the Tribunal are perfectly in order, as the entries in the exemption Notification should be strictly construed. Moreover, the issue as to whether the entries in an exemption Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n into consideration grounds 1 & 4 of the grounds of appeal raised by the department, while interpreting the exemption Notification, for setting aside the order of the appellate authority. For better clarity, we extract the above grounds relied upon by the Tribunal as follows:- ''(1) The appellant herein respectfully submit that the concessions provided for Ball Clay under Notification No.25/99-Cus dt 28.2.99 is only for Ball Clay used in the manufacture of Ceramic Cores/Substrate for Resistors. The words 'for resistors' in column 4 against Sl.No.158 of the said Notification qualifies the 'slashed' words 'ceramic cores/substate' thereby making it clear that both ceramic core and the substrate should be used ultimately for resistors. Similarly in Sl No 3 of the said Notification the Description of the finished goods under Col 4 is given as ''Glass Shells/parts for colour picture tubes' implying that both glass shells / parts should be used for manufacture of colour picture tubes as both are used in the manufacture of colour picture tubes. This being the fact, the Ld.Commissioner (Appeals) has erred in holding that ceramic core used for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th substantial question of law, we find that there is no scope for the Tribunal to give a liberal interpretation to the exemption Notification in the light of the various decisions of the Supreme Court on this issue. Therefore, we answer the same in favour of the department and against the assessee. 11. Coming to the fifth substantial question of law, on the facts of this case, we could see that the finding of the appellate Commissioner has no relevance to the issue, because the original authority has not granted the benefit of registration for import of ball clay for the manufacture of ceramic cores used in the insulators. If the appellant manufactures ceramic cores, there can be no difficulty in granting the exemption. But what the appellant, in their letter dated 30.10.2003, requested was for import of ball clay for the manufacture of various types of high tension porcelain insulators, which cannot be allowed under the Notification. Therefore the relief was rightly denied by the original authority. However, the first appellate authority, on a misreading of the Notification, relying upon the certificate issued by the Chartered Engineer, wrongly set aside the order of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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