Strict construction of exemption notifications denied concessional customs duty for an X-ray shoe inspection system

Concessional customs duty under Notification No. 21/2002-Cus. was denied for an imported X-ray shoe inspection system because it did not answer the notified description of a "Viewing Box for assessing visible damage." The equipment was shown by its literature to detect hidden nails and other concealed defects, while the importer's supporting opinions did not establish equivalence with the specific item covered by the notification. The exemption claim failed because the claimant must clearly prove that the goods fall within the terms of the exemption, and any ambiguity is resolved against the claimant. The denial of concessional duty was therefore upheld.

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Issues: Whether the imported X-ray Shoe Inspection System was covered by Notification No. 21/2002-Cus. as a "Viewing Box for assessing visible damage" and thus entitled to concessional customs duty.

Analysis: The notification granted concessional duty only to a Viewing Box for assessing visible damage. The imported equipment was described and supported by literature as an X-ray inspection system used to detect unseen nails and other hidden defects in shoes. The evidence relied upon by the importer, including opinions from leather-related institutions, did not establish that such an X-ray system was the same as a viewing box contemplated by the notification. In exemption matters, the person claiming the benefit must clearly show that the goods fall within the notified description, and any ambiguity must be resolved against the claimant.

Conclusion: The imported machine did not qualify as a Viewing Box for assessing visible damage, and the exemption benefit was rightly denied.

Final Conclusion: The order denying concessional duty was upheld and the appeal failed.

Ratio Decidendi: An exemption notification must be construed strictly, and the assessee must clearly establish coverage within its terms; if the goods do not squarely answer the notified description, the benefit cannot be granted.

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