Interpretation of 'bag type filter arrangements' under customs exemption upheld for hot mix plant imported with filter bags.

Imported hot mix plants with filter bags were treated as satisfying Sl. No. 230 of Notification No. 21/2002-Cus. where the only missing item was the filter housing sourced locally. The term "bag type filter arrangements" was read in light of the exemption's object, and the notification was found not to require import of the housing expressly. Denial of exemption solely because the housing was not imported was held inconsistent with the proper interpretation of the notification, so the goods remained eligible for the benefit.

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Issues: Whether the imported hot mix plant with filter bags, but without import of the filter housing, satisfied the description and conditions of Sl. No. 230 of Notification No. 21/2002-Cus. dated 01.03.2002 so as to qualify for exemption.

Analysis: The dispute centered only on the expression "bag type filter arrangements" in the notification. The goods were imported for road construction, the function of the filter bags was not in dispute, and the plant had been imported with the filter bags themselves. The only objection was that the housing for accommodating the bags was sourced locally. The notification did not expressly require import of the housing, and the use of the word "arrangement" was read in the context of the object of the exemption. Denial of benefit solely because the housing was not imported was held to be inconsistent with the proper interpretation of the notification.

Conclusion: The imported goods were held eligible for the benefit of the notification, and the department's challenge failed.

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