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2023 (3) TMI 1180 - MADRAS HIGH COURTEligibility for SAD exemption - Classification of imported goods - import of Rock Phosphate from Egypt for manufacturing copper under the description “Natural Calcium Phosphate” - to be classified under the tariff head 25101010 or under the classification of ‘Minerals or Chemical Fertilizer Phosphotic’ falling under Tariff head 3103? - HELD THAT:- By exempting Special Additional Duty on fertiliser or raw material used for manufacturing fertilizers, the end user namely the farmers will be getting the benefit of the said exemption. Whereas if fallacious interpretation for the term 'fertilizer' unconnected to the context is given, then may lead to miscarriage of the object for which the concession granted. The importer admits that the goods imported required in the process of manufacturing copper. They admit that they are not involved in manufacturing fertilizer nor holder of any license to manufacture fertilizers. At the time of import, they declared that the goods is covered under Tariff 25101010 and the name of the product is “natural calcium Phosphate”. It is admitted by the importer that no permission obtained under FCO, since the product 'rock phosphate' imported does not require such permission being not within the specification for rock phosphate to be qualified as 'fertiliser' under FCO. It is well settled principle of law that in case of exemptions, law should be strictly interpreted and liberal interpretation detrimental to revenue is not advocated. In the present case, the impugned order due to the infirmities noted has caused injury to the revenue hence to be redressed. The order of the Customes Department declining to grant SAD exemption is upheld - Appeal allowed.
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