Sulphur powder exemption depends on physical form, not the crude sulphur description, where evidence shows powder form.

Imported sulphur qualified for exemption under Notification No. 7/92-Customs where the evidence showed it was in powder form. The distinction was treated as one of physical form, not purity or trade description, so goods described as crude sulphur could still fall within the exemption for sulphur powder. The record, including the certificate and test report, supported the finding that the goods were powder. The argument based on amendment and retrospective clarification was not necessary to decide because entitlement turned on the nature of the goods at import.

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Issues: Whether the imported sulphur, though described as crude sulphur, was entitled to exemption under Entry 12 of the Table to Notification No. 7/92-Customs dated 01.03.1992 on the footing that it was in powder form.

Analysis: The decisive question was the nature of the goods as imported on the date of entry. The amended notification was not the basis of the appellate decision, and the question whether the amendment was clarificatory and retrospective was therefore not required to be decided. The record showed evidence that the sulphur was in powder form, including the certificate relied upon by the Commissioner (Appeals) and the test report indicating powder form. The distinction drawn was between the purity of sulphur and its physical form. Crude sulphur is still sulphur, and if it is in powder form, the exemption for sulphur powder under the notification cannot be denied. The appeal did not effectively displace that evidence or show that crude sulphur could not be in powder form.

Conclusion: The imported goods fell within the exemption for sulphur powder under the notification and the claim for exemption was maintainable. The Revenue's appeal failed.

Final Conclusion: The exemption was upheld on the basis of the physical form of the imported sulphur, and the appellate order allowing the benefit was left undisturbed.

Ratio Decidendi: Where an exemption notification covers sulphur powder, the benefit cannot be denied merely because the goods are described as crude sulphur if the evidence establishes that the goods were in powder form.

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