Concessional customs duty for a metering gear pump cannot be denied without notice of adverse expert material.
Concessional customs duty under Notification No. 21/2002-Cus. was available for an imported metering gear pump used to meter viscose solution for spinning because the record showed it performed the required metering function and no separate measuring device was attached. Denial of the benefit could not be sustained where Revenue relied on expert opinion without putting the importer on notice of that material, and the importer's contrary opinion was not considered. In the absence of rebuttal evidence from Revenue, the technical description of the goods supported classification for concessional treatment, and the benefit was allowed.
Issues: Whether the imported metering gear pump for viscose was eligible for the concessional rate of duty under Serial No. 112 of List 30 in Notification No. 21/2002-Customs, and whether denial of the benefit was sustainable in view of the material and notice relied upon by the authorities.
Analysis: The imported equipment was used to meter viscose solution at the required rate for spinning, and the record indicated that no separate measuring device was attached. The authorities relied on expert opinion, but the importer was not put on notice of the proposed reliance on that material and the opinion furnished by the importer was not considered. In the absence of contrary evidence from Revenue, and in light of the technical description showing the pump's metering function, the claim to concessional treatment was supported.
Conclusion: The appellant was held entitled to the concessional rate of duty, and the denial of the benefit was set aside.
Final Conclusion: The appeal succeeded, and the assessment was disturbed to the extent necessary to grant concessional duty treatment on the imported goods.
Ratio Decidendi: Where the evidence shows that an imported machine performs the specified metering function required by the notification, concessional duty cannot be denied without giving notice of reliance on adverse expert material and without rebuttal evidence from Revenue.
TaxTMI 
AI Drafter ✕
TaxTMI 
