2008 (3) TMI 74

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..... ents imported for manufacture of watch parts subject to the condition that the importer followed Customs (Import of goods at concessional rate of duty of manufacture of excisable goods) Rules, 1996 (ICMEGR).  As per the ICMEGR, the importer is required to register the manufacturing unit with the jurisdictional Assistant Commissioner/Dy. Commissioner, execute a bond with him to secure the differential duty in case of failure of utilization of imported goods for the intended purpose, periodically intimate the jurisdictional Assistant Commissioner/Dy. Commissioner, an undisputed quantity of goods that would be imported etc.  Titan had registered its unit at Hosur under the above rules.  However, while most of the goods were cons .....

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..... p; 3. Heard both sides.  4. We have carefully considered the facts of the case and submissions by both sides.  We find that the Tribunal in it's decision in Titan Industries Ltd. Vs. Commissioner of Customs, Bangalore reported in 2005 (191) ELT 748 (Tri.-Bang.), had held in a similar case involving the appellant held in the context of interpreting another notification that the imported goods continued to be eligible for the exemption benefit even if raw materials/components were used in another unit owned by the importer.  We find that even though the ICMEGR, the notification considered in that case did not extend the benefit subject to this ICMEGR.  The notification covering the grant of concession in that case also .....

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..... strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction." The ratio of the above judgment is in favour of granting the disputed benefit to Titan.  In the circumstances, we allow the appeal filed by remand  and vacate the impugned  order. The asseessee shall produce certificates from the jurisdictional Assistant commissioner/ Dy. commissioner to establish that the horological materials were put to the intended use in its units. The appellant shall be allowed an effective hearing. (Operative part of the order pronounced in open Court 12.03.08)  
Case l .....

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