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TMI Blog1997 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... gs in the kilns and are fitted inside the kilns. The beams are susceptible to breakage and damage and have to be continuously replaced in the course of manufacture. 2.The appellant submitted an application before the Chief Controller of Imports and Exports on March 29, 1990 for issuance of a Special Import Licence to import various items required for the manufacture of Lightening Arrestors. The said items included Cyrstar Beams as Kiln Furniture. The Deputy Chief Controller of Import and Export issued the Special Import Licence on April 24, 1990 for import of various items including crystar beams. Along with the said import license, the Duty Exemption Entitlement Certificate (hereinafter referred as `DEEC') was also issued in the following terms : "Material imported against advance Licence No. P/L/3236631/CS.XX/16/H/90, dated 24-4-1990 issued by Deputy Chief Controller of Imports Exports, Hyderabad to the above importer and covered by the list of Materials specified under Part `C' of this Certificate would be eligible for exemption from Import duty subject to the conditions specified in the Notification of the Government of India, Ministry of Finance, Department of Revenue an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as `the Tribunal') by the impugned judgment dated November 5, 1992. The Tribunal has held that the question regarding exemption from duty and the interpretation of the notification issued under Section 25 of the Customs Act has to be decided by the customs authorities alone and the fact that the import of the goods was covered by a specific mention in Part C of the DEEC has no bearing on the jurisdiction of the customs authorities because exemption from duty is one aspect while validity of import under the import license is another aspect. The Tribunal has also agreed with the view of the Additional Collector that the expression "raw materials and components required for the manufacture of the goods to be supplied" in Notification No. 210/82-Cus. read with Notification No. 116/88, dated March 30, 1988 cannot be extended to include within its scope raw materials and components required for a Kiln or a furnace in which the goods to be supplied are manufactured. Hence this appeal. 4.Shri S. Ganesh, the learned counsel for the appellant, has urged that the appellants are entitled to exemption from payment of customs duty on Crystar Beams imported by them both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manufacture of product is necessary for the purpose of manufacturing the product. Shri Ganesh has also urged that in any event Cryster Beams would fall within the ambit of the expression "materials required to be imported for the purpose of manufacture of products" contained in Notification No. 116/88-Cus., dated March 30, 1988 because the words "for the purpose of manufacture" in the said notification have the effect of enlarging the ambit of the exemption that has been granted. In this context Shri Ganesh has pointed out that in the DEEC reference has been made to Notification No. 116/88-Cus., dated March 30, 1988. 8.Shri Subba Rao, the learned counsel appearing for the Revenue, has placed reliance on the definition of the expressions "exempt materials" and "materials" contained in clauses (iii) and (viii) of the explanation to Notification No. 116/88, dated March 30, 1988. The said clauses provide as follows : "(iii) `Exempt materials' means the materials imported and specified in Part "C" of the said Certificate and eligible for exemption from duty under this notification; (viii) `materials' means goods which are raw materials, components, intermediate products or c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said object and purpose of the exemption. In the notification two different expressions have been used namely, `materials required to be imported for the purpose of manufacture of products' and `replenishment of materials used in the manu- facture of resultant products' which indicates that the two expressions have not been used in the same sense. The expression `materials required to be imported for the purpose of manufacture of products' cannot be construed as referring only to materials which are used in the manufacture of the products. The said exemption must be given its natural meaning to include materials that are required in order to manufacture the resultant products. On that view, the exemption cannot be confined to materials which are actually used in the manufacture of the resultant product but would also include materials which though not used in the manufacture of the resultant product are required in order to manufacture the resultant product. Crystar beams imported by the appellant are materials, which though not used in the manufacture of H.T. Porcelain Insulators required for Lightening Arrestors, are materials which are required for producing the insulators in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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