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TMI Blog1992 (8) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... n 39% or 40%, he would have to pay the auxiliary duty because the Notification does not apply to it in terms. Counsel, however, submits that such anomalies are inevitable in the case of provisions of this type and that, in taxing matters, it is imperative to concentrate on the language of the statute or the relevant statutory instrument. If the wording clearly imposes a tax or gives a relief, that should be given effect to. If the wording does not justify either the imposition or the relief, it should not be extended merely on the ground that there may be some unintended anomaly as a consequence of the interpretation or that the equities of the situation require a more liberal interpretation. It seems absurd to say that when the part suffers a basic duty of 40% and the whole a duty of 40%, there will be a countervailing duty but that there will be no such duty where the basic duty on the part is 41% or more but reduced to 40% because of the 1977 notification. The correct position appears to be that the purpose and purport of the 1979 notification is to ensure that, in respect of the articles listed therein, the part should not suffer a higher duty than the whole. The 1980 notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No. 35/79 may now be extracted, which reads thus : "Exemption to parts of any article falling under Chapters 82, 84, 85, 86 and 87 and meant for initial set up or assembly of that article. - In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Department of Revenue and Banking No. 350-Customs, dated the 2nd August, 1976, the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempt parts of any article falling under the Headings Nos. 82.05(2), 84.01/02, 84.03, 84.04/05, 84.07, 84.08(1), 84.09, 84.10(1), 84.11(1), 84.11(4), 84.13, 84.14, 84.15(1), 84.16, 84.17(1), 84.18(1), 84.22, 84.23, 84.24(1), 84.25, 84.26, 84.28, 84.29, 84.30(2), 84.31, 84.32, 84.33, 83.34, 84.35, 84.36, 84.37(1), 84.38(1), 84.39, 84.40(1), 84.41(1), 84.42(1), 84.42(2), 84.43, 84.44, 84.45/48, 84.49, 84.56, 84.57, 84.59(2), 85.02(1), 85.11(1), 85.18/27(3), 85.18/27(7), 86.01/03, 87.01(1) and 87.02(3) of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India and proved to the satisfaction of the Assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable on such goods under sub-section (1) of Section 4 of the said Finance Act." xxx xxx Xxx SCHEDULE xxx xxx xxx 198. No. 35- Customs, dated the 15th February, 1979. xxx xxx xxx (Emphasis added) 6. Shri Gauri Shanker Murthy, learned counsel appearing for the department, raises two contentions : (i) Notification No. 35/79 only exempts articles which fall under Item Heading No. 84.04/05 and since the pressure gauges, the articles presently in question, have been assessed and are clearly assessable under Item Heading No. 92.04, there is no question of the assessee getting any concession under Notification No. 35/79. In this connection our attention is drawn to the terms of Note 1(g) and (1) and 2 to Section XVI of the Schedule. (ii) The relief in respect of auxiliary duty under Notification No. 41/80 is available only where the goods in question are partially or wholly exempt from duty of customs by virtue of the notifications of the Government of India specified in the Schedule. In the present case the duty of customs leviable on the part taken by itself, under Item Heading No. 92.04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under Notification No. 41/80 can be claimed only in respect of goods which are partially or wholly exempt by virtue of Notification No. 35/79. The parts in the present case as well as the principal article of which they are part are both assessable to basic duty at the same rate. Since the duty payable on the part, even without invoking the notification, is not in excess of the duty payable on the article, the assessee cannot be said to have got a partial or complete exemption of basic duty by virtue of Notification No. 35/79. Consequently, the assessee cannot claim any benefit under Notification No. 41/80. This interpretation no doubt leads to an anomaly in marginal cases. If the rate of duty on the part had been 41%, the assessee would have been entitled to a complete exemption from auxiliary duty. On the other hand, if the rate of duty on the part had only been 39% or 40%, he would have to pay the auxiliary duty because the Notification does not apply to it in terms. Counsel, however, submits that such anomalies are inevitable in the case of provisions of this type and that, in taxing matters, it is imperative to concentrate on the language of the statute or the relevant statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enjoy the benefit of the same or less duty on the part than that on the whole, from auxiliary duty. 10. We think that this interpretation not only does not do any violence to the language of the notifications but, on the other hand, gives effect to its true intent and purpose. We, therefore, uphold the view taken by the Tribunal somewhat hesitantly, that the assessee was entitled to exemption from auxiliary duty in respect of the goods in question. 11. Shri Murthy, at one stage, pointed out that the claims in the present case also related to consignments imported on or after 1-3-1981. He submitted that the Notification No. 41/80 had ceased to be in force on 28-2-1981 and that the exemption from countervailing duty was not available thereafter. Though this was a new point, we were inclined to consider it. But, after some further research into the terms of the various notifications issued on or after 1-3-1981, he conceded that the exemption continued to be available on the same or similar terms. We, therefore, do not discuss the position after 1-3-1981 separately with detailed reference to the relevant notifications. We make it clear that our conclusion earlier set out will appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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