TMI Blog2016 (10) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... and argue that if cables are extended exemption therein, raw materials for manufacture of such cables would also come within the permissible ambit of exemption. This is definitely not the benefit intended by the said notification. It is settled law that exemption notification has to be strictly interpreted. Reliance placed on the decision of B.P.L. Ltd. Vs Commr. of C. Ex., Cochin-II [2015 (5) TMI 248 - SUPREME COURT] - appellant cannot claim unintended benefits by imported items which are not listed or included in the notification no. 23/98-Cus dated 02.06.1998. Whether interest liability will accrue in provisional assessments initated in July/August 1998, i.e. before 13.07.2006? - Held that: - the Tribunal in Sterlite Industries (India) Ltd. Vs CC, Trichy [2013 (11) TMI 999 - CESTAT CHENNAI] held that in respect of provisional assessment prior to 13-7-2006 interest would not be leviable by invoking Section 18 (3) of the Customs Act, 1962 - at the time of resorting to the provisional assessment there was no statutory provision authorizing imposing of interest on the differential duty, (the provision which was introduced w.e.f. 13-7-2006), hence we hold that there cannot be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for getting a liecence from the Licensing Authority to import goods under Notification No.36/97-Cus without payment of duty. 2.3 The appellant opted for import of goods under Notification No. 23/98-Cus and registered the imports with the Customs, Hyderabad under the Project Imports Regulations, 1986 under CTH 9801. There is no bar in claiming exemption under any other notification even while clearing the goods under CTH 9801. Serial No. 164 of list 27, item 17 of the Notification No. 23/98-Cus provides exemption for cables . The appellant is eligible to import the raw materials required for manufacture of cables which were supplied to the refineries since entry of CTH 9801 covers the raw materials required for manufacture of cables that are going to be cleared to the refineries are also eligible for import under the said notification. The appellant declared in the contracts he executed before the Customs that he is going to import raw materials for manufacture of cables. The Customs registered the contracts without any objection. The appellants imported the goods i.e., raw materials; used them in manufacture of cables and supplied the cables to the oil refineries. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. On behalf of department Ld. AR Sh. Arun Kumar submitted that the demand of ₹ 78,05,489/- being the differential duty along with interest thereon is legal and proper. 5. Heard both sides. 6. The Crux of the issue is firstly issue is firstly whether the appellant is eligible for benefit of exemption Notification No. 23/1998-Cus dated 02.06.1998 or otherwise and secondly, whether interest liability will accrue in provisional assessments initated in July/August 1998, i.e. before 13.07.2006. 7. It is not disputed that the appellant had registered contracts under project imports for manufacture of cables required for refineries. They declared intention to import cables for the said project imports also availing duty concession benefits under the notification ibid. However, the appellants imported instead of cables, raw materials for manufacture of cables. On perusal of Sl.No. 17 of list 27(Sl. No. 164 of the Table) annexed to the said notification the item that is listed for benefit of duty concession are goods specified in list 27 required for setting up crude petroleum refineries . The list 27, Sl.No.17, interalia, covers all types of cables . However, nowhere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption. 30. In Novopan India Ltd. (Novopan India Ltd. v. CCE and Customs, 1994 Supp (3) SCC 606) this Court held that a person, invoking an exception or exemption provisions, to relieve him of tax liability must establish clearly that he is covered by the said provisions and, in case of doubt or ambiguity, the benefit of it must go to the State. A Constitution Bench of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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