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2014 (12) TMI 401 - HC - CustomsUser of imported Ball Clay in the manufacture of Ceramic core that are captively consumed for the manufacture of Porcelain insulators - Benefit of Notification 25/99 Cus dated 28.2.1999 - Import of ball clay - Captive consumption - concessional rate of duty for the manufacture of excisable goods) Rules, 1996 - Rejection of registration - Held that:- Tribunal has rightly held that the registration obtained by the appellant was for the manufacture of 'electric insulators' and not for the manufacture of 'resistors' nor they claimed that 'resistors' are the same as 'insulators'. It also held that to avail the benefit of concession under the Notification, the appellant should have claimed that the imported ball clay is to be used in the manufacture of 'ceramic cores/substrates for resistors'. Since the appellant had not claimed so, they are not entitled to the benefit of the above entry. In our view, the said findings of the Tribunal are perfectly in order, as the entries in the exemption Notification should be strictly construed. when the Notification clearly provides the benefit of concessional duty only for manufacture of ceramic cores/substrates for resistors, which is not the claim of the appellant, we are not inclined to accept the case of the appellant that ceramic cores are nothing but porcelain insulators. As has been rightly held by the Apex Court [2008 (3) TMI 452 - SUPREME COURT OF INDIA], we are not inclined to read something more into the Notification, which are not found therein. Accordingly, we answer the first substantial question of law in favour of the department and against the assessee. Tribunal has rightly upheld the order of the original authority for rejecting the application of the appellant for manufacture of porcelain insulator, inasmuch as the porcelain insulator to be manufactured by the appellant is not known in the market / trade parlance as 'ceramic core' and therefore the concessional rate of customs duty cannot be extended to the imported ball clay for the manufacture of porcelain insulator. Accordingly, the second substantial question of law is answered in favour of the department and against the assessee. Finding of the appellate Commissioner has no relevance to the issue, because the original authority has not granted the benefit of registration for import of ball clay for the manufacture of ceramic cores used in the insulators. If the appellant manufactures ceramic cores, there can be no difficulty in granting the exemption. But what the appellant, in their letter dated 30.10.2003, requested was for import of ball clay for the manufacture of various types of high tension porcelain insulators, which cannot be allowed under the Notification. Therefore the relief was rightly denied by the original authority. However, the first appellate authority, on a misreading of the Notification, relying upon the certificate issued by the Chartered Engineer, wrongly set aside the order of the original authority. In our view, the said error has been rightly corrected by the Tribunal on the facts of this case. Substantial question of law is answered in favour of the department and against the assessee. If the import of ball clay is used in ceramic core/substrate for resistors, the appellant would be entitled to get the benefit of the Notification and in that case, there is no need to manufacture porcelain insulator. But the appellant is trying to confuse the issue by stating that ceramic core is being captively consumed in the manufacture of porcelain insulator and therefore the import of ball clay should be allowed. The said claim of the appellant cannot be accepted for the reasoning given by the Tribunal. Accordingly, the last substantial question of law is also answered in favour of the department and against the assessee. - Decided against assessee.
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