2014 (1) TMI 475 - AT - Customs

Tribunal favors Revenue in strict Notification interpretation

COMMISSIONER OF CUSTOMS (IG), NEW DELHI Versus NTPC

The Tribunal allowed the appeal in favor of the Revenue, setting aside the impugned order. The decision emphasized the strict construction of Notification ... Benefit of Notification No. 174/66, dated 24-9-1966 - Re-imported cabling of gas turbine after repair - Held that:- condition imposed in the Notification in Clause-4 is that the goods are being imported for personal use and not for sale and Clause-3 provides that the benefit of Notification is not available in case at the time of import the ownership of goods has been changed from the family of exporter. Such conditions clearly leads to the conclusion that the Notification is for individuals only - provisions of Notifications are to be strictly construed and in case of any ambiguity, benefit goes to the State - time of re-import of goods, adjudicating authority has allowed the benefit of another Notification No. 94/90 - Following deicison of Nova Pan (India) Pvt. Ltd. v. CCE, Hyderabad [1994 (9) TMI 67 - SUPREME COURT OF INDIA] - Decided in favour of Revenue. Issues:1. Interpretation of Notification No. 174/66 and entitlement to benefits.2. Whether the benefit of the Notification extends to companies.3. Conditions for availing the exemption under Notification No. 174/66.4. Application of legal precedents and interpretation of relevant clauses.5. Strict construction of Notification provisions and ambiguity resolution.Analysis:1. The appeal revolved around the interpretation of Notification No. 174/66, specifically concerning the entitlement of the respondents to its benefits. The Revenue contested the Commissioner (Appeals) decision, arguing that the conditions of the Notification were not met, thus challenging the allowance of benefits to the importer.2. The debate extended to whether the benefit of Notification No. 174/66 could be extended to companies, as advocated by the respondent's counsel. Reference was made to a previous judgment by the Hon'ble Bombay High Court, which interpreted the term 'person' to include companies. This interpretation was crucial in determining the scope of the Notification's applicability.3. The conditions for availing the exemption under Notification No. 174/66 were scrutinized, particularly focusing on the requirement that the goods be imported for personal use and not for sale. Additionally, the condition stipulating that ownership should not have changed from the exporter's family was highlighted as a key factor in determining eligibility for the benefit.4. The analysis delved into the comparison between Notification No. 174/66 and a previous Notification, No. 80/70, emphasizing the absence of similar conditions in the latter. This comparison was pivotal in assessing the relevance of past decisions in the context of the present case and determining the applicability of legal precedents.5. The judgment emphasized the principle of strict construction of Notification provisions, citing a Supreme Court decision that in cases of ambiguity, the benefit should lean towards the State. This principle guided the Tribunal's decision in favor of the Revenue, highlighting the importance of clear and unambiguous interpretation of legal provisions in such matters.In conclusion, considering the various arguments presented, legal interpretations made, and the application of relevant precedents, the Tribunal set aside the impugned order and allowed the appeal in favor of the Revenue, emphasizing the strict construction of Notification provisions and the absence of conditions favorable to the respondents in the present case.