TMI Blog2005 (2) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... availing exemption is prescribed in Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. The respondents have another factory at Gurgaon. Due to labour unrest in their Bangalore factory during December 1998, the respondent transferred a part of the imported goods to their Gurgaon factory. Revenue proceeded against the respondent. The original authority confirmed duty demand of Rs. 3,33,788/- and levied mandatory penalty under Section 114A. Interest under Section 28AB was also demanded. In the appeal before the Commissioner (Appeals), Bangalore, the respondents were successful. Revenue is aggrieved over the order of the Commissioner (Appeals) on the following grounds : 3. An elaborate proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II. Moreover, as per the rules and the Notification, the imported goods should be used only in the Bangalore factory, which is the factory of the importer. There is absolutely no provision for diverting the goods. The factory at Gurgaon was not registered. There is no certificate from the jurisdictional Assistant Commissioner regarding the utilisation of the goods. Hence, he requested that the OIA may be set aside. 6. The learned Advocate for the respondent urged that the respondent kept the department informed of the diversion by addressing a letter to the Additional Commissioner on directions from the jurisdictional DC. In their letter, they had clearly indicated the circumstances necessitating diversion of goods to Gurgaon. The letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial of Modvat credit unjustified 7. We have gone through the records of the case carefully. The Commissioner (A) has examined the issue in the proper perspective. There are broadly two ways of interpreting law. The first approach would be to go by the grammatical and ordinary sense of the words. In this approach, one sticks to the letter of the law. According to this approach, even if the interpretation gives rise to unjust results, which Parliament never intended, the literal meaning must prevail. In this case, if we go by a very literal interpretation, the Revenue is correct. If law and the rules framed are interpreted with mathematical rigour, then a computer can be programmed to administer law. There will not be any need for huma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The case laws cited by the learned Advocate are very relevant for this appeal. In our view, the Commissioner (A)'s order has no infirmity and Revenue's appeal is devoid of merit. Before parting, we would like to quote the following extract from 'the Closing Chapter' by Lord Dening (Page 97). Sticking to the letter (i) The old way "In the middle of the 19th century the judges spoke of a 'golden rule' by which statutes were to be interpreted according to the grammatical and ordinary sense of the words. Even if it gave rise to unjust results which Parliament never intended, the grammatical meaning must prevail. Although speaking of the grammatical meaning, they took the literal meaning. They stuck to the letter. That is the way in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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