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2009 (3) TMI 454 - AT - CustomsButtons- Notification No. 21/2002-Cus.- The appellant imported parts of snap buttons and cleared the same at ‘nil’ rate of duty availing the benefit of exemption Notification No. 21/2002, Sl. No. 140. A bond was executed for producing proof of re-export within 3 months from the date of import. Subsequently, proceedings were initiated against the appellants on the ground that the said exemption notification is not applicable to parts of snap buttons. The lower authorities confirmed the demand of Rs.27,52,846/- being the duty foregone on the imported goods. The appellants were aggrieved over the order of the Original Authority and therefore, they approached the Commissioner (Appeals) for relief. The Commissioner (Appeals) passed the impugned order and upheld the order of the Original Authority. The appellants are aggrieved over the impugned order. Hence they have come before the Tribunal for relief. Held that- The garments had also been exported, even though the Notification gives exemption to button only. In the circumstances of the case, the benefit to be extended to parts. The snap button consists of 4 parts, a single part in isolation does not have any use at all. If one part is imported, all the other parts also, have necessarily to be imported for use. In such circumstances, the part also would be covered by entry No. 140. Any other interpretation would lead to absurdity. Moreover, the fact that the parts of the snap buttons had been used in the garments and exported is not disputed. In our view the appellants had fulfilled the conditions of the relevant Notification by which the goods imported have to be used in the exported goods and thereafter exported. As long as this condition had been fulfilled, no duty can be demanded on the imported goods. There is no merit in the order demanding duty foregone. Hence, we set aside the same and allow the appeal with consequential relief.
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