End-use condition for concessional customs duty satisfied where fibre glass roving was used in telecommunication cable manufacture.

Imported fibre glass roving qualified for the concessional duty benefit under Customs Notification No. 23/98 because the end-use condition was satisfied by its use as a strength member in telecommunication cables and self-supporting PVC drop wire. The record indicated that the departmental specification itself contemplated fibre glass roving conforming to the relevant British Standard for such manufacture, and the Revenue material did not displace the actual use established by the appellants. On that basis, the notification benefit was available and the demand and penalties could not be sustained.

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Issues: Whether the imported fibre glass roving was eligible for the concessional duty benefit under Customs Notification No. 23/98 dated 2nd June, 1998 when it was used in the manufacture of telecommunication cables and drop wire.

Analysis: The dispute turned on whether the imported roving satisfied the end-use condition of the notification. The record showed that the appellants used the roving as a strength member in the manufacture of telecommunication cables and self-supporting PVC drop wire, and the departmental specification itself contemplated fibre glass roving conforming to the relevant British Standard for such use. The material relied upon by the Revenue did not negate the actual use of the imported roving in the manufacture of the telecommunication products described by the appellants.

Conclusion: The appellants were entitled to the benefit of the notification and the demand and penalties could not be sustained.

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