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TMI Blog2024 (9) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tariff, have set out the justification for resort to Schedule IV of the rate notification instead of attempting to establish that the declaration of the importer was incorrect. Unlike the valuation mechanism which has offerings of alternatives upon discard of declarations, classification may offer several alternatives of which only one must be determined first with full certainty as apt before comparison of aptness. Thus, onus not being discharged in the show cause notice issued to the appellant owing to which the confirmation of duty liability and other detriment failed to meet the tests of law as set out by the General Rules for Interpretation of the Tariff - appeal allowed. - HON BLE MR C J MATHEW , MEMBER ( TECHNICAL ) And HON BLE MR AJAY SHARMA , MEMBER ( JUDICIAL ) Dr Samir Chakraborty , Senior Counsel with Shri Darshan Madekar , Advocate and Shri Abhijit Biswas , Advocate for the appellant Shri A K Singh , Special Counsel for the respondent ORDER PER: C J MATHEW The issue in dispute in this appeal of M/s Tata Steel Ltd is the chargeability to integrated tax on imported goods, under authority vested by section 3(7) of Customs Tariff Act, 1975 intended otherwise to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e continuity in the tax chain for the incidence to fall on the ultimate consumer of goods or services, similar effect is accorded to imported goods under the authority of Provided that the integrated tax on goods .. imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1963. in section 5(1) of Integrated Goods and Service Tax Act, 2017. It is this cross-reference in the two statutes that brings the levy and collection within the scope of customs authorities while according limits on that authority too. With the design distinction in the two tariffs, the fitment of goods in the two may not always coincide either in the description or in the code raising the spectre of jurisdictional competence to undertake the task of re-determination of rate of duty. Furthermore, unlike in the erstwhile regime of duties on manufacture that did not acknowledge imported goods within its scope and the corresponding charge on imported goods came with an alternative nomenclature as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aircraft into two broad categories for private use and for other than private use . From the foregoing discussions it is clear that the importer has satisfied the policy conditions for import of said helicopters by importing it for private use . Therefore in my opinion as far as import policy is concerned, there is no violation by the importer. However, the conditions of importability of goods cannot be confused with the conditions for levy of duty. The term private use has been utilised as far as importability of the goods and satisfying the import policy with regard to helicopters is concerned. However, the levy of duty will be governed by the relevant tax rate notifications. In this regard, it is mentioned that it is alleged in the SCN that the term private use corresponds to for personal use under the 1GST and Compensation Cess Notifications and the GST law. This volition of the SCN issuing authority needs to be tested as per extant relevant legal provisions. 13.10 It is seen that for the first category of, i.e. for private use , an Import Licence is required from DGFT and for second category, i.e. other than private category , no Import Licence is required to be obtained from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls [2022 (381) ELT 289 (SC)] 12. We would, at this stage, take on record the well-settled principle that words in a taxing statute must be construed in consonance with their commonly accepted meaning in the trade and their popular meaning. When a word is not explicitly defined, or there is ambiguity as to its meaning, it must be interpreted for the purpose of classification in the popular sense, which is the sense attributed to it by those people who are conversant with the subject matter that the statute is dealing with. This principle should commend to the authorities as it is a good fiscal policy not to put people in doubt or quandary about their tax liability. The common parlance test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law-maker. However, the above rule is subject to certain exceptions, for example, when there is an artificial definition or special meaning attached to the word in a statute, then the ordinary sense approach would not be applicable. and drew upon the wisdom of 9. Before we embark upon an inquiry as to what would be the correct interpretation of Section 28-A, we think it appropriate to bear in min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . But before any words are read to repair an omission in the Act, it should be possible to state with certainty that these words would have been inserted by the draftsman and approved by the legislature had their attention been drawn to the omission before the Bill had passed into a law. At times, the intention of the legislature is found to be clear but the unskilfulness of the draftsman in introducing certain words in the statute results in apparent ineffectiveness of the language and in such a situation, it may be permissible for the court to reject the surplus words, so as to make the statute effective. . in the judgement of the Hon ble Supreme Court in Union of India v. Hansoli Devi [(2002) 7 SCC 273]. 6. Our attention was also drawn to circular No. 14/2018-Cus dated 4th June 2018 of Central Board of Excise and Customs clarifying the legislative intent in carving out special treatment to personal imports was to be determined not from customs law but from the Handbook of Procedures (HoP) appended to the Foreign Trade Policy (FTP) at paragraph 2.07(a)(iii) thus 12. In view of the amendments carried out to heading 9804, it follows by principle of exclusion, that imports by a lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Ortho Clinical Diagnostics India Pvt Ltd. v. Commissioner of Customs (Import), Mumbai [2022 (9) TMI 1109 CESTAT MUMBAI], that 13. The rate of duty for levy of integrated tax is prescribed under the authority of section 5 of Integrated Goods and Services Tax (IGST) Act, 2017. Our appellate jurisdiction is limited, as far as rate of duty is concerned, to those prescribed in Customs Tariff Act, 1975, Central Excise Tariff Act, 1985 or in Finance Act, 1994. This appellate jurisdiction originates with exercise of adjudicatory authority under Customs Act, 1962, Central Excise Act, 1944 and Finance Act, 1944 thereby binding the original, and first appellate, authorities therein to such jurisdictional circumscribing. Central tax officers appointed under Central Goods and Services Tax (CGST) Act, 2017 are subject to a different appellate structure. We would consider it inappropriate for us to venture into the exercise of classification under a law that is beyond our jurisdiction and the adjudicating authority should also have been similarly cautious. The arguments of Learned Senior Counsel and of Learned Authorized Representative on the merit of their respective stands on the classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pters having been registered as private aircraft with the Director General of Civil Aviation (DGCA), fitment as personal use was the only option. He also relied upon the decision of the Hon ble Supreme Court in BPL Display Devices Ltd v. Commissioner of Central Excise, Ghaziabad [2004 (174) ELT 5 (SC)], in Commissioner of Customs v. National Organic Chemical Industries Limited [2002 (2) TMI 1316] and in State of Haryana v. Dalmia Dadri Cement Ltd [1987 (11) TMI 94 (SUPREME COURT)] as well as decision of Hon ble High Court of Bombay in Municipality of Dhulia v. New Pratap Spinning, Weaving and Manufacture Co Ltd [AIR 1935 Bom 415]. 10. It is common ground that the issue in dispute centres around the expression personal use employed in the rate notification concerned. It is also common ground that personal use has not been defined either in the said rate notification or in the Integrated Goods and Service Tax Act, 2017. Canvassing by Learned Special Counsel of the classification adopted for regulatory registration as defining the distinction with aircraft for non-exclusive deployment does not pass muster for two reasons. If such was the intent, the authority responsible for assigning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Devi, we are unable to find ourselves competent to interpret personal use , in the rate notification intended for inter-state sales that was extended also to cover imported goods, as the impugned order has and arrogate a jurisdiction that may be in conflict with interpretation in an inter-state supply transaction. Such an exercise on our part would not only be futile but also has potential for chaos in the mechanism for levy and collection of goods and service tax (GST). 13. The adjudicating authority did venture upon such an exercise through a show cause notice that should, in accord with the General Rules for Interpretation of the Tariff, have set out the justification for resort to Schedule IV of the rate notification instead of attempting to establish that the declaration of the importer was incorrect. Unlike the valuation mechanism which has offerings of alternatives upon discard of declarations, classification may offer several alternatives of which only one must be determined first with full certainty as apt before comparison of aptness. It was in such circumstances that the Tribunal, by relying upon the decisions of the Hon ble Supreme Court supra, held, in re Ortho Clini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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