1996(10)LCX0166

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri S.L. Peeran, Member (J) and Shiben K. Dhar, Member (T)

ARVIND MILLS LTD.

Versus

COLLECTOR OF CUSTOMS, BOMBAY

Final Order No. C/1646/96-B, dated 15-10-1996 in Appeal No. C/2029/89-B2

Advocated By : None, for the Appellant.

 Shri K.K. Jha, SDR, for the Respondents.

[Order per : S.L. Peeran, Member (J)]. - This appeal arises out of Order-in-Appeal dated 17-5-1989 by which the Collector rejected the appellants refund claim. The appellants had imported shuttles for textile machinery and same were classified under Chapter sub-heading 8448.41 of Customs Act. They filed refund claim in time seeking the benefit of Chapter 89. However, in the refund claim they mentioned Notification 132 of 1987, dated 19-3-1987 which grants concessional rate of customs duty. The Asstt. Collector rejected that claim on the ground that the notification does not lay down any rate of duty but notified the goods having general application. He further noted that as no specific notification is mentioned, therefore, claim is not tenable. Collector (Appeals) has observed that only those goods/parts which have been classified under Heading 9806 are to be granted partial exemption and as the shuttles have been classified under Chapter Heading 8448 and there is no challenge to this classification at any stage. Therefore, Collector held that the exemption under such notification is not available to the appellants. Aggrieved by this order, the appellants have filed this appeal.

2. The appellants have not appeared but they have requested for decision on merits.

3. We have heard ld. DR and on perusal of the entire papers, we are satisfied that the appellants were eligible for the benefit of concessional rate of duty under Chapter 98. Chapter 98 refers to goods/parts falling under Chapter 84 also. This was amplified by the appellants before the Collector in their Appeal-memo and they specifically referred also to Notification No. 69/87-Cus., dated 1-3-1987 which clearly specifies that parts and accessories falling under Chapter 8448 is chargeable to duty @ 45% and exempted from entire auxiliary duty. We find substance in the claims of the appellants in their appeal-memo. The benefit was available to the impugned goods and the same should have been extended at the initial assessment stage itself, when the Deptt. classified the goods under Chapter 84. At the relevant period goods falling under Chapter 8448 including parts were eligible for benefit under Chapter 98. Therefore, the appellants have amplified and clarified their claim before the Collector, which has not been properly appreciated. Both the authorities below have not applied their mind. The appellants have also filed other Bills of Entry in respect of the same goods wherein the benefit has been extended.

4. In that view of the matter, we allow the appeal and set aside the impugned order.

Equivalent 1997 (91) ELT 639 (Tribunal)