9911796707
TMI Blog2011 (1) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... 1999). They filed 26 Bills of Entry during the said period for clearing the goods described as "Nonene". In most of the Bills of Entry, it has been mentioned as "Nonene" and "Nonene (as "Naphtha")" in the rest of the Bills of Entry. In all the Bills of Entry, the appellant classified the goods under sub-heading 2710.00 of the First Schedule to the Customs Tariff Act and claimed the benefit of one or the other Notification, which was admissible to "Naphtha". The first Notification granted full exemption from payment of duty on "Naphtha" falling under Heading 27.10 and the second one provided concessional rate of duty (5%) for the same commodity. The assessing authority provisionally assessed the goods at "Nil" rate of duty. The assessing aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finalized the original assessment by classifying the goods under sub-heading 2901.29 and denying the benefit of the Notifications to the assessee and asking them to pay the differential amount of duty. Aggrieved by this decision of the Dy. Commissioner of Customs, the assessee preferred an appeal to the Commissioner (Appeals) and the latter upheld the order of the lower authority. Contextually, it needs to be mentioned that the original authority mainly relied on an opinion offered by the Dy. Chief Chemist, dated 25-1-99. The Dy. Chief Chemist had opined that "Nonene" was a separate chemically defined organic compound and distinctly different from "naphtha". The appellate authority also relied on the Dy. Chief Chemist's opinion. 2. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. 3. The ld. SDR, on the other hand, submits that, in all the Bills of Entry filed by the appellant, the item was described as "Nonene" and that the same description was used by the adjudicating authority in the Annexure to the Order-in-Original. The question before the assessing authority was whether "Nonene" could be considered as "Naphtha" for the purposes of the two exemption Notifications. It is submitted that the opinion offered by the Dy. Chief Chemist resolves this issue in favour of the Revenue. The description of goods given in an exemption Notification has to be strictly construed as held in numerous cases by the Hon'ble Supreme Court. In this context, reliance has been placed on Healthways Dairy Products Co. v. Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is not in dispute that the goods in question was described as "nonene" in all the Bills of Entry. In some of the Bills of Entry, the description was " nonene (as naphtha)". All the Bills of Entry claimed the benefit of the relevant Notifications, Notification No. 18/94-Cus. for imports prior to 28-2-99 and Notification No. 20/99 Cus. for the subsequent imports. The first Notification provided "Nil" rate of duty for "naphtha" falling under Heading 27.10 mentioned at Sl. No. 8 of the table annexed thereto. The second Notification provided concessional rate of duty (5%) in respect of 'naphtha" (Heading 27.10 at Sl. No. 30 of the table annexed thereto). The question before us is whether either of this benefit could be allowed to the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e properties of nonene (1 - nonylene), which was described by its chemical formula, solubility in water and alcohol, specific gravity, combustibility and boiling point (149.9°C). These properties of nonene are also provided by CCD. From the comparative account given by the Dy. Chief Chemist, it is clear that 'naphtha' is a mixture of hydrocarbons distilling in the range of 175°C to 240°C, whereas 'nonene' is a separate chemically defined liquid hydrocarbon boiling at 149.9°C, soluble in alcohol, insoluble in water etc. Both the notifications granted benefit to imported 'naphtha'. None granted any benefit in respect of 'nonene'. As rightly submitted by the ld. SDR, an exemption notification requires to be strictly construed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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