TMI Blog2022 (9) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue must not be seen to take advantage of this error in classification. Once the CESTAT has categorically held that coils would fall under tariff heading 8503, it follows on all counts that accessories to the coil should also be treated under the same head, also eligible for duty refund. The conclusion of R2 and the submissions of the revenue to the effect that the refund must be restricted only to the duty paid on account of coils, cannot be disagreed - impugned order to the extent to which it rejects the refund in respect of accessories is quashed. Interest - HELD THAT:- Interest is payable from 3 months from date of receipt of the refund application till date of payment. In this case, the date of refund application is 27.08.1994 and in light of the order passed above holding the refund payable, interest would be applicable on the amount to be refunded on accessories in terms of Section 27A, from 3 months from date of refund application till date of payment. Petition allowed. - W.P.No.20499 of 2019 - - - Dated:- 14-9-2022 - Honourable Dr. Justice Anita Sumanth For the Petitioner : Mr.M.V.Swaroop For the Respondents : Mrs.Hema Muralikrishnan Senior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Corporation, Japan for the supply of epoxy coils and accessories, vide this office order No.KFI/SRHW/601/ICB/BB/Hitachi dt. 23.10.89. 2) The firm had supplied the epoxy coils and accessories and the same have arrived vide M.V.Vishwapallav vessel which has been cleared from customs at Madras vide B/E HB 555 dt. 5.7.90 for Rs.4,92,83,323.00. 3) Vide our claim letter dt. 17.9.90 we had requested to reclassify the epoxy coils and accessories under heading 8501.64/9801. The case has not come for hearing till to date. Further we wish to state that after detailed review of the custom tariff and classification, it is found that the epoxy coils are parts which are used solely/principally with the generator/machine. Therefore we request you to classify epoxy coils and accessories under heading 8503 of custom tariff for the payment of custom duty at the rate of 35% (basic duty) + 45% (aux. Duty) + 20% CVD 5% SED on CVD instead of classification under heading 8501.64/9801 as already claimed. 4) Therefore under the above circumstances, we request you to reassess the epoxy coils and accessories together under heading 8503 for payment of lower rate of custom duty and refund t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Entry No.HD0601030 dated 25.08.94 and HD555 dated 27.08.94. The goods were assessed under 8544.11 and the appellant paid duty without protest. Subsequently, they filed the refund claim and claimed the classification under 8503. The Commissioner (Appeals) rejected the appeal. The same was upheld by CESTAT under Final Order No.541-544/2000 dated 25.04.2000. The Hon ble Supreme Court in their order dated 09.04.2002 in Civil Appeal No.6582, 6583 and 6586/2000 set aside the orders and remanded the matter to the Assistant Commissioner to decide the original application dated 27.08.94. The adjudicating authority in his denovo order held that the goods are rightly classifiable under 8544 and rejected the claim. The Commissioner (Appeals) in her order dated 30.04.2004 upheld the OIO and rejected the appeal. Hence, the present appeal. 3.The Ld. Advocate appearing on behalf of the appellant submits that the imported items are parts of hydro electric generators and they have imported epoxy stator coil in the year 1990 for functioning of the Hydro Electric Project of Sharavathi Power Generation Station. The impugned goods are parts of the generator and it is solely/principally des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is not in dispute. On perusal of the Bills of Entry, literature, catalogue and schematic/sketch diagrams enclosed with the appeal paper book, we find that as per the invoice dated 30.05.90 we find that the description at Sl.No.1 was described as epoxy insulated single turn half coils wave stator winding and Sl.No.2 were spares and accessories. On perusal of the copy of the original catalogue of both Hitachi, Japan and General Electric Canada INC., the goods have been described as under:- The Hitachi HI-Mold Coil is a high quality insulation system employed in producing Class F high-voltage stator coils for rotating machines As per GE Canada, the goods have been described as CGE advanced insulation system . From the above descriptions and literatures which is supported by the letter dated 08.09.95 issued by GE, Canada INC, wherein the principal supplier has clearly certified that these spare epoxy coils and accessories are specially made for the generators at Sharavathy Power Generating station and can be used only for the above generating units and not elsewhere. This confirms that the goods imported are epoxy stator coils solely/principally used for the generators ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The revenue would vehemently rely on paragraph 2 of the order of the Cestat pointing out that the reference of the Tribunal is only to the assessment under tariff heading 8544.11. Thus, according to them, the refund application was restricted only to the bills of entries relating to coils, since the Tribunal has mentioned only tariff heading 8544.11. It is based solely upon the above interpretation of the order of the Cestat R2 proceeds to restrict the refund to the duty remitted on coils alone. 8. I am however of the considered view that the refund application and order of the Cestat have to be seen conjointly and holistically, and instance of the revenue upon certain observations of the Cestat alone, would distort the issue, seen in isolation. A perusal of the refund application makes it clear to me that the refund sought for was in respect of both the coils and accessories. In fact, the petitioner has stated so, in as many words, at paragraphs 2 and 3 of the refund application extracted at paragraph No.3(v) supra. 9. The computation of duty also indicates the duty paid in respect of 4 Bills of Entries, 2 for coils and 2 for accessories. Thus, there is no doubt in my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation.- Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal,57[National Tax Tribunal] or any court against an order of the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] under sub-section (2) of section 27, the order passed by the Commissioner (Appeals), Appellate Tribunal, 57[National Tax Tribunal] Tribunal or as the case may be, by the court shall be deemed to be an order passed under that sub-section for the purposes of this section. 13. As per the aforesaid provision, interest is payable from 3 months from date of receipt of the refund application till date of payment. In this case, the date of refund application is 27.08.1994 and in light of the order passed above holding the refund payable, interest would be applicable on the amount to be refunded on accessories in terms of Section 27A, from 3 mont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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