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2024 (4) TMI 1020 - CESTAT CHENNAIImport of road construction machines - Benefit of exemption - Actual user conditions - requirements of a valid contract for road construction. - Goods declared as ‘New Python 5000 Pothole Patchers Machine’ - duty exemption under Notification No. 12/2012 (Sl. No. 368, list 16) - adjudicating authority denied the benefit of notification to the importer on the ground that the imported machines being used to patch-up or repair minor cracks / potholes which develop on the existing road surface were not found specified under List 16 - Validity of contract with NHAI etc. for the construction of roads in India - HELD THAT:- We find that Boards Circular F No 345/17/2008-TRU, dated 23/02/2009 has not been issued in connection with Customs Notification No. 12/2012 but is pertaining to Service Tax levy. Interpreting a notification benefit with a Circular issued for another enactment is always fraught with danger of misinterpretation. There is nothing in the exemption notification to show that only machines used for construction activities should be given its benefit and not extended to machines for maintenance and repair activities. The machines listed in list 16 cover a whole gamut of road construction activity like, paver finisher, surface dressing eqp., kerb laying, bridge inspection unit, stone crushing plant, tunnel excavators etc and not to road laying equipment/ machines alone. The matter has been discussed elaborately at para 7 of the impugned order. Further machines at Sl. Nos.4 and 5 can also be used for repair and maintenance activities of roads. We hence do not find the impugned order to be erroneous on this ground. It is not Revenue’s case that the said contract was not entered into with this authorized agency. The Respondent has explained that one of the conditions for bidding for the contract was that they should be in possession of a machine for carrying out the contracted work. Hence the contract could only have been applied for while possessing a machine, necessitating its prior import. We feel that it is impossible for every notification to perceive exhaustively situations and circumstances that may emerge after its issue and where its application may be called for. Hence the process of interpretation combines both a literal and a purposive approach. The purpose of the concession is to ensure that the machine is used for the purpose specified in the notification. In exceptional cases the exemption could have been extended provisionally with a bond and finalised after a reasonable opportunity was given to the importer to produce the contract. Thus, we find that the learned Commissioner (Appeals) has used his discretion fairly and judicially in interpreting the notification and his order does not merit interference. The appeal is hence rejected and the matter disposed of accordingly.
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