TMI Blog1997 (7) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... goods were covered by an EPCG licence No. P/CG/2134490/C/XX/37/01/95, dated 22-8-1995 issued by the DGFT authorities under Para 38 of the EXIM Policy, 1992-97 AM, which was registered at Mumbai Custom House. However, the Asstt. Commissioner, Appraising Group VA, Jawahar Custom House vide his order, dated 4-10-1996 rejected the party s claim for assessment under the EPCG scheme and denied concessional assessment under Notification No. 111/95-Cus. on the grounds that the goods imported did not fall under the purview of `Capital goods as defined in the Notification No. 111/95-Cus. Therefore, as the goods in question failed to satisfy the primary requirement laid down in the Notification No. 111/95-Cus. to qualify for concessional assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Asstt. Commissioner and granted consequential relief to the appellants while allowing the appeal. The ld. Commissioner of Customs (Appeals) held that as the appellants have a valid EPCG import licence issued by the DGFT authorities which is duly registered by the Customs authorities and includes the impugned goods, it is incorrect to deny the benefit of Notification No. 111/95-Cus. to the goods under import. Further, Commissioner of Customs (Appeals) held that as the EPCG licence has been specifically issued under the provisions of the EXIM Policy, therefore, to disregard this is erroneous and bad in law. 4. Shri K.M. Mondal, ld. SDR contended that Commissioner (Appeals) has only considered the fact that the respondents had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital Goods Committee consisting of experts. The goods imported are specifically covered by the licence issued and in such a situation, the question of not granting the exemption will not arise at all. The ld. Counsel referred to Condition (1) to the exemption notification which is that goods should be covered by valid licence issued under Export Promotion Capital Goods (EPCG) Scheme in terms of Export and Import Policy permitting import of goods free of duty and the said licence is produced for debit by the proper officer of the Customs at the time of clearance. The respondent have fully satisfied this condition and the ld. Counsel urged the exemption under the Notification should therefore flow from such fulfilment of the condition. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, and equipments and instruments for testing, research and development, quality and pollution control; (b) use in manufacturing, mining, agriculture, acquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultury and sericulture. 7. The respondent had claimed that Ion Exchange Resins imported are covered by the explanation Catalysts for initial charge and hence are eligible for the exemption against the EPCG licence produced in which the goods are covered. However, it is found that the Ion Exchange Resins are used by the respondent in the following manner in the manufacture of Citric Acid. They manufacture Citric Acid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in any way according to the supplier. On the contrary, they say that the same charge of resin would be used again and again. They have further stated by analogy with catalysts, Ion Exchange Resin should not be termed as `raw materials and they further indicate that it could possibly be a spare parts rather than consumer goods. 9. Therefore, the conclusion of the Asstt. Collector that Ion Exchange Resin will not be covered by the catalysts for first charge occurring in the explanation in the notification is well founded, because clearly it is not the categorical assertion of the respondent s supplier that these are catalysts and judging by the information on Ion Exchange Resin in the manufacturing process of being a purifier also it do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner took objection to the Customs authorities seeking information whether the integrated circuits imported against the licence can be used in the export product viz. radios. Before the Delhi High Court it was submitted by the revenue that a circular issued by the Director General Foreign Trade relied upon by the Petitioner was against the provision of Customs exemption notification for DEEC purpose No. 203/92 issued under Section 25 of the Customs Act under which various conditions have been prescribed and the term materials for the purpose of exemption was also defined; and that therefore the Customs authorities could go into the fact whether the goods imported will be eligible for exemption under the notification against the DE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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