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Issues:
Classification of imported item under OGL, correct classification under Customs Tariff Act, eligibility for benefit under Notification No. 125/86, interpretation of Chapter 98 for project imports, applicability of Notification No. 132/85, conflicting judgments, applicability of Supreme Court judgment on similar issue. Analysis: The appeal concerned the classification of an imported item described as a "Cup Noodle Making plant for dried Cup Type Noodles production capacity 50,000 PCS per 8 Hours" under the Import Export Policy, 1985-88. The appellants imported the machinery under project import, assessed under Chapter 98, and claimed a refund under Notification No. 125/86. The Assistant Collector rejected the refund claim citing the goods' classification under Heading 9801 and the entry date before the Notification came into force. The Collector upheld this decision, emphasizing the specific classification under Heading 9801 as a barrier to claiming benefits under Notification No. 125/86. The appellants argued that the goods were correctly classified under Chapter 84 and that Chapter 98 should apply only if the goods meet the conditions for project import. They relied on Notification No. 132/85, stating that it does not bar benefits under other Notifications. Reference was made to judicial precedents like Jain Engineering Co. and Ecoplast Pvt. Ltd. to support their stance. The Revenue contended that Chapter 98 supersedes basic classification, as evident from the Finance Minister's speech and the legislative intent behind Chapter 98's creation. They cited the Collector of Central Excise v. Parle Exports Pvt. Ltd. and Union of India v. Jalyan Udyog judgments to support their argument. After considering both sides' submissions and perusing relevant judgments, the Tribunal noted a similar Supreme Court judgment in M/s Abrol Watches Pvt. Ltd. v. Collector of Customs, which clarified that benefits under Chapter 98 do not preclude claiming other exemption Notifications if the goods qualify on merits. As the Revenue did not dispute the applicability of Notification No. 125/86 and the goods fell under its description, the Tribunal set aside the lower authorities' decisions and allowed the appeal based on the Supreme Court's interpretation. In conclusion, the Tribunal relied on the Supreme Court's precedent to grant the appellants the benefit under Notification No. 125/86 despite the goods being classified under Chapter 98 for project import. The judgment emphasized that the specific classification under Chapter 98 does not bar claiming benefits under other relevant Notifications if the goods meet the criteria. This decision aligned with the principle that legislative intent and judicial interpretations play a crucial role in determining the applicability of exemption Notifications in customs matters.
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