TMI Blog2008 (6) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... S/Shri R. Raghavan and M. Kannan, Advocates, for the Appellant. Smt. R. Bhagyadevi, SDR, for the Respondent. [Order per: P.G. Chacko, Member (J)]. - The appellants had imported raw materials for the manufacture of components of wrist watches viz. Bezel Case, Bezel Ring and Back Cover. The goods were cleared at concessional rate of duty in terms of Customs Notification No. 36/96 dt. 23-7-96 (Sl. No.122) and Customs Notification No. 11/97 dt. 1-3-97 (Sl. No. 116). Both the Notifications provided for concessional rate of duty for "horological raw materials imported for the manufacture of components of wrist watches, mechanical or quartz analog." As a condition for availing the benefit of the first Notification, the appellants exec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were (a) stainless steel flats, hot-rolled/cold-rolled and (b) stainless steel strips cold-rolled. After investigations, the department found that the raw material imported for the final products mentioned at Sl. No. 21 of List 3 or List 4 had been used for the manufacture of the final products mentioned at Sl. No. 22 of the same list and vice versa. On account of such "cross-utilization" of raw materials by the importer, the department took the stand that the end-use condition attached to the above Notifications had been violated and, therefore, the difference between the duty leviable on the imported materials but for the Exemption under the Notifications and the duty already paid at the time of importation was recoverable from the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the appellants in respect of: the raw materials consumed in the manufacture of strap parts. As regards the rest of the raw materials imported by the appellants, the argument of their counsel is that, once the imported goods are found to be covered by the Notifications when strictly construed, a liberal approach is permissible for extending the benefit of the Notification to such goods. In this connection, he has referred to a decision of this Bench rendered in their own case reported as Commissioner v. Titan Industries Ltd., 2007 (214) E.L.T. 316 (Tri.-Chennai). It has been argued that the purport of the Notifications was to grant the benefit of concessional rate of duty to importers of horological raw materials meant for the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification No. 36/96 or Sl. No. 116 of Notification No.11/97. The benefit of concessional rate of duty was not available to such raw materials. As rightly pointed out by the ld. SDR, the provisions of an Exemption Notification have to be interpreted literally and not liberally. Accordingly, stainless steel flats, cold-rolled or hot-rolled, procured for manufacture of Bezel Case of wrist watch cannot be used in the manufacture of Bezel Ring or Back Cover of wrist watch. Similarly, cold- rolled stainless steel strips imported for the purpose of manufacturing Bezel Ring or Back Cover cannot be used in the manufacture of Bezel Case. This is the plain meaning of the entries at Sl. Nos. 21 and 22 of List 3/List 4 attached to the relevant No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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