TMI Blog1991 (5) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... Industrial condenser for power improvement; and (ii) Licence No. CIL - 74(79) dated 6-4-1979 for power capacitors. As per these licences and the details mentioned in the letter No. 1660 (86) IL-SCS dated 20-4-1987 addressed to the importer by the Department of the Industrial Development that plastic film capacitors and power capacitors are two entirely distinct and distinguishable entities. 3. In the Import and Export Policy 1988-91, all types of Plastic film capacitors appear under Sr No. 11(6)(ii) of Entry No. 831 of Appendix 6, list 8, part 1 whereas power capacitors all types, except community type, find a mention against entry No. 592 of Appendix 3, Part A. Hence power capacitors and plastic film capacitors have been differenciated from each other in the context of Import Policy also. 4. Plastic film capacitors are made of plain or metallised plastic film and foil. They are miniature in size. Their capacitors is very low. They are mainly used for by-pass/filteration compling in electronic equipments/TV/Radio/computer, etc. Power capacitors are big in size. They are assembled in metal boxes and filled with epoxy and their capacitors is very high (1 KVR and above). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .P. film. 8. After examining the various technical literature, the learned Collector has given a finding that capacitors using polypropylene films as dielectric are also referred to as a category in the power capacitor technology. The learned Collector took into consideration the following materials - (i) the reference contained in Import Export Policy 1988-91 including these 2 categories of capacitors under separate appendixes and (2) the recognition for power capacitors as distinct entity under some notification issued under Customs Tariff Act. For example, Notification No. 91/89 dated 1-3-1989 in Sr. No. 9 speaks of capacitors excluding paper capacitors, power capacitors, medium and high frequency capacitors and disc ceramic capacitors. From this, the Collector has held that power capacitor has been distinguished from other categories of capacitors such as paper capacitor, disc ceramic capacitors and medium and high frequency capacitors, having been separately mentioned. The Collector has also found plastic film capacitors having been accepted as a different category from power capacitor in the Scheme envisaged in the Customs Tariff. He has also noted that this distin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te with regard to the imported goods falling within Item 45 of the table annexed to the Notification No. 345/86 dated 16-6-1985 and also there is no dispute of the item imported for manufacture of capacitors. The capacitors manufactured out of plastic films can only be regarded as plastic film capacitors and hence the imported item is clearly entitled for the benefit of the said notification. 10. They have further stated that the expression plastic film capacitors appearing in item 45 of the table annexed to the said Notification No. 345/86 dated 16-6-1986 is clearly a description of capacitors based on raw materials used for the manufacture of capacitors. If a capacitor is manufactured out of plastic film, it has to be regarded as plastic film capacitor within the meaning of the said Item No. 65. They have contended that in the present case, there is no dispute with regard to the said goods having been imported for manufacture of capacitors. As the raw material used for manufacture of such capacitors is plastic films, such capacitors must be regarded as plastic film capacitors within the meaning of the said Item 45 in the notification in question and benefit to be extended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reliance on licence and other materials to draw a different conclusion was not based on technical literature nor on the basis of ISI specification on the basis of common parlance and Trade understanding. Therefore, the Collector had proceeded on a general basis and had totally misconstrued the notification. A notification has to be plainly read without giving any supposed intendment and the Collector had read more than what was stated in the notification. The Collector cannot read the notification in the light of licence or Import Policy or Customs Tariff and give a different interpretation to the notification than what could be gathered by simple reading of the notification. He contended that the Collector has misapplied the notification to mean that the power capacitor mentioned therein referred only to electronic power capacitor. 13. In support of his contention, he relied on the technical literature which was also before the Collector and read out the relevant pages to show that the imported item was used in the power capacitor for which the notification granted the exemption. Shri Khaitan relied on the following citations - 1. Tincore Oil Mills v. Collector of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in column (3) of the Table hereto annexed and falling within the Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in the corresponding entry in column (2) of the said Table, when imported into India for the purpose of manufacture of the goods specified in the corresponding entry in column (4) of the said Table, from (a) so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated at the rate of thirty per cent ad valorem, and (b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act subject to the following conditions, namely - (i) an officer not below the rank of a Joint Director in the Department of Electronics of the Govt. of India or a Joint Director in the Directorate of Industries of the Govt. of a State or an Addl. Industrial Advisor in the Directorate General of Techn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave relied upon the technical literature as well as ISI Specification IS: 1885 (Part 42) 1985 as well as ISI specification for shunt capacitors for power system IS-2834-1986. These materials are sufficient to come to conclusion that the imported item is used for the manufacture of the plastic film capacitors for which the notification in question is intended. But, however, the learned Collector has read into the notification more than what is required to be plainly gathered. The Collector has proceeded on the basis of supposed intendment of the notification to grant exemption only to such plastic film capacitors which are used in the electronic industry. Such a reading has been based on the Customs Tariff and on reference in Appendix 6, Part I as AM 88-91. This is not a dispute pertaining to wrong importation or any of the charges made under Section 111 or 112 of the Customs Act. The Collector would have been justified to have come to such a conclusion, had there been such charges made out for confiscation, penalty and seizure. The Department has not made out any dispute in the violation of Customs Act, or charged the appellants for any of the contravention of licence or Import Pol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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