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Issues:
1. Whether the Auto Clipping Machine qualifies as machinery for the production of commodities for the purpose of availing a customs duty concession under Notification No. 11/97. 2. Whether the decision of the Assistant Commissioner denying the benefit of the notification to the appellant is legally sound. Analysis: 1. Issue 1 - Qualification of Auto Clipping Machine as Machinery for Production of Commodities: The appeal revolved around determining if the Auto Clipping Machine imported by the appellant could be considered machinery for the production of commodities under Notification No. 11/97. The Commissioner held that the machine, used for clipping/sealing pleated filter paper, did not produce a commodity as per the commercial definition. The machine's function was limited to preparing an intermediate product that was not marketable. The appellant argued that the clipped paper should be considered a commodity even if not directly marketable, citing precedents where machines preparing essential components for marketable products were granted benefits. However, the Tribunal upheld the Commissioner's decision, emphasizing that the clipped paper was not a marketable commodity, thus denying the appellant the benefit of the notification. 2. Issue 2 - Legality of the Assistant Commissioner's Decision: The appellant contested the Assistant Commissioner's decision to deny the customs duty concession, arguing that the clipped paper should be deemed a commodity, albeit not directly marketable. The appellant relied on judgments where similar machines preparing essential components for marketable products were granted benefits. However, the Tribunal upheld the Assistant Commissioner's decision, citing precedents that emphasized the requirement for machinery to produce marketable commodities to qualify for duty concessions. The Tribunal found that since the clipped paper produced by the machine was not marketable on its own, the denial of the benefit of the notification was legally justified. Consequently, the Tribunal rejected the appeal, affirming the decision of the Assistant Commissioner. In conclusion, the Tribunal's judgment focused on the definition of commodities in a commercial sense and the requirement for machinery to produce marketable goods to qualify for duty concessions. The decision highlighted the distinction between intermediate products and marketable commodities, ultimately upholding the denial of the customs duty concession to the appellant based on the nature of the product generated by the Auto Clipping Machine.
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