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2022 (8) TMI 660 - AT - CustomsBenefit under EPCG Scheme denied - refractory bricks used for re- lining or maintenance of the furnace - exemption denied on the ground that these are not capital goods - Department was of the view that since Furnace Oil could be procured duty free only if it was required for boilers in textile units, M/s Jayant Agro Organics Ltd could not procure the Furnace Oil duty free since they were not a textile unit - Extended period of limitation. HELD THAT:- The refractories imported by the appellants are covered by the definition of ‘accessory’ and, hence, included in the definition of ‘capital goods’. Thus, the definition of ‘capital goods’ not only includes refractories for initial charge but also those imported as replacement for the purpose of re-lining or maintenance of the furnaces. The Appellants have, therefore, correctly availed the benefit of the two exemption notifications, N/N. 102/2009-Cus dated 11-09-2009 and 103/2009-Cus also dated 11-09-2009. The first part of the definition of capital goods uses the term ‘means’. The term ‘means’ is exhaustive in nature and is meant to cover all the items mentioned therein, namely, plant, machinery, equipment or accessories, as ordinarily understood, required for the manufacture or production, either directly or indirectly of goods. Refractory bricks are clearly accessories required for lining of the furnace, and hence indirectly used for manufacture of finished goods by the appellants. The use of the expression ‘ refractories for initial lining’ in the inclusive part of the definition of capital goods does not in any way restrict the meaning of the terms used in the ‘means’ part of the definition. The refractories meant for re-lining of furnaces, i.e., for replacement, are covered by the ‘means’ part of the definition of ‘capital goods’ and this interpretation cannot in anyway be restricted or controlled by the use of the expression ‘refractories for initial lining’ used in the inclusive part of the definition of ‘capital goods’. Extended period of limitation - HELD THAT:- The Ld. Advocate of the Appellant is agreed upon, that notwithstanding the fact that Section 28 has not been invoked in the show cause notice or in the impugned order, the department cannot ignore those provisions. The show cause notice ought to have been issued within the time period prescribed therein. The normal time limit prescribed is one year from the relevant date. The extended time limit of 5 years can be invoked only if there are grounds to hold that the Appellant had willfully misstated or suppressed facts from the department. This charge cannot be sustained. The Appeal is allowed both on merits as well as on limitation.
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