2003 (3) TMI 642 - AT - Customs

Summary

Issues:
1. Interpretation of Notification No. 176-Cus., dated 14-6-93 regarding exemption to Jumbo Rolls of X-Ray Films.
2. Requirement of holding an industrial license under the Industries (Development and Regulation) Act, 1951 for availing the exemption.
3. Determination of whether the importer satisfied the conditions of the notification at the time of import.

Interpretation of Notification No. 176-Cus., dated 14-6-93:
The appellant imported Medical X-Ray Films in Jumbo Rolls and claimed the benefit of the notification. The notification provided for partial exemption to Jumbo rolls of X-Ray Films, subject to certain conditions. The appellant's appeal was rejected by the Collector of Customs (Appeals) on the grounds of not fulfilling the conditions specified in the notification, particularly clause (b) related to holding an industrial license.

Requirement of holding an industrial license:
The appellant had applied for a license under the Industries (Development and Regulation) Act, 1951 for slitting and confectioning of photo-sensitized materials for Jumbo Rolls. The license was issued after the import of the X-Ray Films, but the licensing authority had informed the appellant that it could carry on business with small-scale registration until the regular COB license was issued. The authorities contended that the appellant did not have a license at the time of import, thereby failing to meet the condition in clause (b) of the notification.

Satisfaction of conditions at the time of import:
The Tribunal found that the appellant was treated as holding the license from an earlier date by the licensing authorities. The Revenue's argument that the appellant did not have a license for slitting medical films was dismissed as the requirement was specifically for photo-sensitized materials, excluding medical X-ray films. A letter from the Ministry of Industries clarified that the license requirement did not extend to medical X-ray films. Therefore, the Tribunal concluded that the appellant met the conditions of the notification at the time of import and was entitled to the exemption.

In conclusion, the Tribunal held that the impugned order was unsustainable and set it aside, allowing the appeal in favor of the importer. The judgment emphasized the importance of interpreting the notification's conditions accurately and ensuring that the importer's actions align with the legal requirements to avail of exemptions under customs regulations.