Strict construction of exemption exclusion allowed catalyst to qualify for concessional customs duty benefit

Concessional customs exemption under Notification No. 20/95-Cus. was available for the imported catalyst because the exclusion for nickel based naphtha steam reformation catalyst was construed strictly. Product literature, supplier descriptions, certificates and expert opinion showed the goods were suitable only for pre-reforming at lower temperature, not steam reforming. The record did not establish that the goods fell within the exclusion, and the contrary inference drawn by the lower authority was rejected. The catalyst was therefore eligible for the notification benefit.

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Issues: Whether the imported catalyst was covered by the concessional exemption under Notification No. 20/95-Cus. or fell within the exclusion for nickel based naphtha steam reformation catalyst.

Analysis: The notification granted concessional duty to goods falling under Chapter 38 of the Customs Tariff Act, 1985, subject to specified exclusions. The imported goods were supported by product literature, supplier's description, certificates, and expert opinion showing that they were suitable only for pre-reforming at a lower temperature and not for steam reforming. The exclusion clause was construed strictly, and the materials on record did not establish that the goods were steam reformation catalyst. The contrary inference drawn from literature by the lower authority was not accepted.

Conclusion: The imported goods were not hit by the exclusion and were eligible for the benefit of the notification. The issue is decided in favour of the assessee.

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