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2005 (3) TMI 138 - SC - CustomsNotification issued on 19th June, 1980 by which an exemption was granted under Section 25(1) of the Customs Act, 1962 of custom duty in excess of 25% ad valorem payable in respect of the import of various items designed for use in the printing industry. Held that:- The respondent authorities have taken an inconsistent stand. From the narration of the facts it is clear that the Commissioner had proceeded on the basis of the capacity of the imported machines and not their actual production. The show cause notice had also been issued on this basis. The Tribunal, on the other hand, has categorically rejected the "capacity test" and has come to the conclusion that the capacity was irrelevant. It held that the interpretation of the notification in fact shows that the only test was whether the output of a machine in one hour was 30,000 copies per hour in actuality and not whether the machine was designed for capacity of X or Y at speeds P & Q. Learned Counsel for the respondent has supported the Tribunal's interpretation of the notification. In our opinion, this would mean that the show cause notice had been issued on an incorrect interpretation of the notification. That should have been sufficient for the Tribunal to set aside the proceedings against the appellant. The appeal is allowed and the decision of the High Court is set aside.
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