TMI Blog2008 (5) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... an Satapathy, Member (T) and Shri D.N. Panda, Member (J) Shri J.P. Khaitan, Sr. Advocate, for the Appellant. Shri Y.S. Loni, JDR, for the Respondent. [Order per: Chittaranjan Satapathy, Member (T)]. - After hearing the matter for some time, we find that the appeal itself can be decided today. Hence, we waive the requirement of predeposit in respect of Custom Appeal No. 52/05 filed by the appellant M/s. Indian Metal Ferro Alloys Ltd. (M/s. IMFA). In view of the fact that the Custom Appeal No. 66/05 is against the same impugned order passed by the lower appellate authority, with the consent of both sides, we take up both the Appeals CDM-52/05 CDM-66/05 for hearing and disposal together. As submitted by Shri J.P. Khaitan, ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to M/s. IMFA on 31-10-90 alleging that impugned goods at Sl. No. (1) to (5) above were not eligible for duty exemption under Notification 13/81-Cus., dated 9-2-81. It was the contention of the department that the first three items were included in the Notification 13/81 through amending Notification 38/86-Cus., dated 12-2-86 and hence such goods imported prior to amendment were not eligible for exemption. As regards other two items, i.e. Sl. No. (4) (5) above, it was the contention of the department that Spares of Cranes and Spares of Conveyors were included in the Notification 13/81-Cus. only through amending Notification 11/88-Cus., dated 15-2-88 and hence the impugned spares imported prior to the amendment were not eligible for exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articles covered by the manufacturing activity. 8. Drawing, blue prints, technical maps and Charts, relating to manufacturing activity. 8. By Notification 38/86-Cus. dated 12-2-86, SI. No. (6) was replaced by the following: "6. Material handling equipment, namely, fork lifts, overhead cranes, mobile cranes, crawler cranes, hoists and stackers". 9. A further amendment was made by Notification 11/88-Cus. dated 15-2-88 to replace SI. No. 4 by the following: "4. Spares of capital goods and material handling equipments, namely, fork lifts, overhead cranes, mobile cranes, crawler cranes, hoists and stackers." 10. It is apparent that the department's demand notices have been prompted by the subsequent amendments to the original N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of worn out machinery and hence the same were also covered in the definition. 12. As regards the department's claim that goods specifically included in the Notification at a later point of time cannot be covered under the original entry, Shri Khaitan refers to Customs Circular No. 16/2007-Cus. dated 18-4-07 issued by the Board. He states that though this Circular has been issued in another context with reference to Notification 52/2003-Cus. dated 31-3-03, it clarifies that the term "capital goods" has not been defined in the Notification and that some of the items mentioned in the other Sl. Nos. of the Annexure to this Notification which are specifically listed for being eligible for the exemption may also qualify as "capital goods" de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, machinery, equipment or accessories required for production of goods or for rendering services. This definition is very broad in its ambit and scope. For production of any goods, the activities required to be performed within a factory would include handling of raw materials, handling of finished goods as well as handling of byproduct and waste arising in the course of manufacture of finished goods and these are very integral to the process of production and manufacturing of goods. The definition also includes the items for replacement or expansion and hence spares for machineries and equipments held to be "capital goods" also get coverage under the definition of "capital goods" under the Exim Policy. We have no doubt in our mind that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -07 in the context of another Notification. We wish that such a clarification was issued earlier which would have prevented raising demand of this kind which has led to the present proceeding. In any case, piecemeal amendments made to the original Notification 13/81 appear to be designed for specific inclusion of such items to put beyond doubt their eligibility to exemption. Such inclusion cannot in any case be taken to restrict the ambit and scope of the expression "capital goods" against Sl. No. 1 of the Table annexed to Notification 13/81. We are of the view that since Notification 13/81 was issued in the context of export promotion to make available imported capital goods, raw materials and components duty free to the Indian producers a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
