2005 (10) TMI 464 - AT - Central Excise

Imported EHT cables cut for Potentiometers exempt under relevant entry

The Tribunal dismissed the Revenue's appeal against the Commissioner's decision, affirming that imported EHT cables, when cut for use in Potentiometers, ... Cables - Exemption - EHT cable Issues:1. Interpretation of exemption notification for imported goods.2. Determination of eligibility for exemption under relevant customs rules.3. Application of case laws in similar contexts to the current dispute.Analysis:The case involved an appeal by the Revenue against the Order-in-Appeal passed by the Commissioner of Customs, Bangalore, regarding the denial of exemption claimed by the Respondent on imported EHT cables used in Potentiometers. The Revenue contended that the cables, imported in running length and later cut for use, did not qualify for the exemption under the relevant entry and Rule 4 of the Customs Rules. The Original Authority denied the exemption, but the Commissioner (Appeals) allowed the Respondent's appeal, leading to the Revenue's appeal before the Tribunal.In the Tribunal, the Revenue was represented by Shri Ganesh Havanur, while the Respondent was represented by Shri K.S. Ravi Shankar. The learned Advocate for the Respondent cited precedents, including a case involving silicone rubber sleevings and another case regarding ventilator tubing, where items imported in running length were considered eligible for exemption. The Revenue reiterated its grounds of appeal.Upon careful review of the case records, the Tribunal examined the Notification and the specific entry seeking exemption for parts of Potentiometers. Drawings of the equipment were presented during the hearing, showing the cut EHT cable to be soldered. The Tribunal found the cited case laws directly applicable and noted a specific mention of EHT cables in running length for a different item in the same Notification. Despite the absence of a similar explicit mention for Potentiometers, the Tribunal, considering the precedents, concluded that the imported EHT cable, when cut for use in Potentiometers, qualified for the exemption. Therefore, the Tribunal rejected the Revenue's appeal, upholding the decision of the Commissioner (Appeals).In the final ruling pronounced in open Court, the Tribunal dismissed the Revenue's appeal, emphasizing the applicability of the cited case laws and the eligibility of the EHT cables for exemption under the relevant entry.