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TMI Blog2016 (2) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/2015 - Final Order No. 40153-40161 / 2016 - Dated:- 28-1-2016 - SHRI R. PERIASAMI, TECHNICAL MEMBER AND SHRI P. K. CHOUDHARY, JUDICIAL MEMBER For the Petitioner : Shri R.S. Sharma, Adv. For the Respondent : Shri L. Paneer Selvam, AC (AR) ORDER PER R. PERIASAMY Appellants filed all these appeals against the orders of the Commissioner of Customs (Appeals), Chennai dated 28.08.2014, 24.12.2014, 24.12.2014, and 27.02.2015. 2. The brief facts of the case are that the appellants are engaged in the manufacturer of tyres, tubes and flaps and also engaged in trading activity of tyres, tubes and flaps and importing the same. As per Notification No. 102/07-Customs dated 14.09.2007, the appellant importer is eligible fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 102/2007 dated 14/09/2007. The adjudicating authority rejected the refund claim of the appellant on the ground that in terms of the amount on the invoices that of non-admissibility of cenvat credit as per the condition 2 (b) of Notification No. 102/07. We find the issue is already settled by the LB decision in the case of Chowglue Co. Pvt. Ltd. Vs. CC, Mumbai. The relevant paragraphs of the said decision is reproduced as under:- 5.1 It would be useful and appropriate at this juncture to understand the genesis of the levy of Special Additional Duty of Customs (SAD). While moving the proposal for this levy in the Finance Bill, 1998, the Hon ble Finance Minister of India stated as follows in his Budget Speech : I a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent sale were initially exempted from levy of SAD vide Sl. No. 11 of the Table Annexed to Notification No. 29/1998-Cus., dated 2-6-1998. The said exemption underwent many changes over the years and the present exemption is contained in Notification 102/2007-Cus. wherein the exemption is operationalised through a refund mechanism. Notwithstanding these changes, the object of the levy was to counterbalance the levy of local taxes on domestically produced goods on imported goods so that there is a level playing field between the two. However, when the imported goods are subsequently sold in the domestic market bearing the burden of local taxes, exemption is provided from SAD so as to neutralize the impact of double levy. This object and purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a distinction, between the provisions of a statute which are of a substantive character and were built-in with certain specific objectives of policy on the one hand and those which are merely procedural and technical in nature on the other, must be clearly drawn. It was further held in the said decision that while interpreting an exemption clause, liberal construction should be imparted to the language thereof if the subject falls within the scope of the exemption. It was also held that, the need to resort to any interpretative process would arise only where the meaning is not manifest on the plain words of the statute. As held by the Hon ble Apex Court in the New India Sugar Mills Ltd. v. Commissioner of Sales Tax, Bihar [AIR 1963 S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case before us and shall not be interpreted to mean that conditions of an exemption notification are not required to be fulfilled for availing the exemption. The ratio of the LB decision squarely applies to the present case as in the present case, the appellant has imported finished goods for the purpose of trading. The Revenue s contention is that the appellant is the manufacturer and they are not proved that they have used these tyres is not justified. As they are manufacturers of tyres and also imported tyres for the purpose of trading and by respectfully following the LB decision of the Tribunal, we hold that the appellant is eligible for the benefit of Notification No. 102/07. The impugned orders are set aside and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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