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of <h1>Supreme Court grants appeal on damaged imported parts, interpreting 'for use' in exemption notifications.</h1> <h3>BPL DISPLAY DEVICES LTD. Versus COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD</h3> BPL DISPLAY DEVICES LTD. Versus COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD - 2004 (174) E.L.T. 5 (SC), 2005 (10) SCC 275 Issues:Entitlement to benefit of Notification No. 13/97-Cus. as amended by Notification No. 25/99-Cus. for imported parts of picture tubes damaged in transit.Analysis:The appeal before the Supreme Court revolved around the entitlement of the appellant to the benefit of Notification No. 13/97-Cus. as amended by Notification No. 25/99-Cus. These notifications offer benefits to specified items imported into India 'for use' in the manufacture of other specified items. The appellant had imported parts of picture tubes for manufacturing color picture tubes, with both the imported parts and the manufactured items falling under the purview of the notifications. A small percentage of the imported parts were damaged in transit during 2000-2001, rendering them unusable for manufacturing picture tubes. The appellant sought to claim the benefit of the notifications for the entire lot of imported parts, citing a previous Tribunal decision and subsequent Court ruling in a related case. The Tribunal, however, relied on a different precedent to rule against the appellant.The Supreme Court, in its analysis, highlighted the similarity between the notifications in question and those in previous cases. It noted that a loss due to damage should be treated no differently than a loss due to leakage, emphasizing that the term 'for use' in the exemption notifications should be construed to mean 'intended for use.' Referring to a prior decision, the Court clarified that the purpose of granting exemptions was to prevent importers or manufacturers from diverting imported products for other purposes, with no intention of using them for manufacturing specified items. The Court ultimately allowed the appeal, concluding that there was no substantial distinction between losses incurred due to leakage or damage, and affirming the appellant's entitlement to the benefit of the notifications.In conclusion, the Supreme Court allowed the appeal without imposing any costs, thereby ruling in favor of the appellant's entitlement to the benefit of Notification No. 13/97-Cus. as amended by Notification No. 25/99-Cus. for the imported parts of picture tubes damaged in transit.
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