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2016 (10) TMI 943 - CESTAT HYDERABAD

2016 (10) TMI 943 - CESTAT HYDERABAD - TMI - Interpretation of notification - refineries and power projects - Cables are exempted from all duties of customs under N/N. 23/1998-Cus dated 02.06.1998 - import of raw materials for manufacture of equipment required for refineries instead of cables - whether the appellant is eligible for benefit of exemption Notification No. 23/1998-Cus dated 02.06.1998 on import of raw material for manufacture of cables instead of cables? - Held that: - the appellant .....

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rmitted for duty exemption benefit. This being the case, the appellant cannot stretch the scope of the notification 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., C .....

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nterest 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 demand of interest liability. - Premature demand - demand issued before finalization of provisional assessment - Held that: - while the notification 23/98-Cus extended duty co .....

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- Duty demand sustained - benefit of notification not available - demand of interest not sustainable - appeal disposed off - decided partly in favor of appellant. - Appeal No. C/284/2004 - ORDER No. A/30794/2016 - Dated:- 16-9-2016 - Ms. Sulekha Beevi, C.S., Member (Judicial) and Sh. Madhu Mohan Damodhar, Member(Technical) Sh. Y. Sreenivasa Reddy, Advocate for the Appellant. Sh. Arun Kumar, Deputy Commissioner (AR) for the Respondent. [Order per: Madhu Mohan Damodhar] This case was disposed ea .....

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n oil refineries is permitted. Import of raw materials for manufacture of equipment required for refineries under Notification No. 23/98-Cus dt.02.06.98 (Sl. No. 164, list 27, item 7). Cables are exempted from all duties of customs under Notification No.23/98-Cus provided that they are supplied to oil refineries on registration of the imports under Project Import Regulations, 1986. The said list specifically mentions cables. 2.2 Notification No. 36/97-Cus dated 11.04.1997, allowed all materials .....

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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 al .....

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8 and the eight bills of entry filed were assessed provisionally by the Customs and there was no objection from Customs even during the assessment of the bills. The contracts are still in force and not cancelled by the Customs. More than six months after the import, the DC, Customs issued a demand notice dated 25.3.1999 (received on 31.3.1999) asking the appellant proposing a demand of differential duty of ₹ 78,05,489/- w.r.t the said eight bills of entry bills of entry under Section 28(1) .....

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nt. The only ground taken by the learned lower authorities for rejecting the exemption is that the notification specified only cables but not raw materials for cables. The chronology is already given above. 3. The Ld. Counsel Sh. Y. Sreenivasa Reddy submitted that appellant is eligible to import raw materials required for manufacture of cables which were supplied to refineries since project imports CTH 98 01 covers raw materials also. When the exemption is applicable to cables, exemption natural .....

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DGFT. Demand notice was issued without finalization of provisional assessment and therefore the demand is premature. It was also contended that the interest demand is unsustainable as there was no provision to demand interest prior to 13.07.2006 in case of provisional assessments. 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 is .....

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ailing 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 in the aforesaid notification or .....

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eted. The Hon ble Apex Court has sustained this view in a number of judgments. For example, even in a recent judgment, the Apex Court in the case of B.P.L. Ltd. Vs Commr. of C. Ex., Cochin-II [2015 (319) E.L.T. 556 (S.C.)] has inter alia held as under: We approve the aforesaid reasoning and rational given by the Tribunal in coming to the conclusion that the goods of the appellant would not qualify the description contained in Notification Nos. 8/96 and 4/97. It is trite that strict interpretatio .....

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within the ambit of the exemption notification. Since, it is a case of exemption from duty, there is no question of any liberal construction to extent the term and the scope of the exemption notification. Such exemption notification must be strictly construed and the assessee should bring himself squarely within the ambit of the notification. No extended meaning can be given to the exempted item to enlarge the scope of exemption granted by the notification. 19. This principle has been reiterate .....

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mption, 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 wit .....

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A Constitution Bench of this Court in Hansraj Gordhandas v. CCE and Customs (AIR 1970 SC 755 = (1969) 2 SCR 253) held that (Novopan India Ltd. case, SCC p. 614, para 16) : 16. ..such a notification has to be interpreted in the light of the words employed by it and not on any other basis. This was so held in the context of the principle that in a taxing statute, there is no room for any intendment, that regard must be had to the clear meaning of the words and that the matter should be governed w .....

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