Customs exemption on actual end use confirmed for components used in initial assembly of notified machinery.

Imported components were treated as eligible for customs exemption where the end-use certificate showed they had been used in the initial assembly of the notified end product, a synchronous condenser classified under Heading 85.01. Actual use in the prescribed assembly was the ative basis for admissibility under Notification No. 182/78-Customs, and the departmental representative raised no objection once that use was established. The document states that the exemption was allowed and the duty consequence followed the accepted end-use proof.

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Issues: Whether the imported components were eligible for exemption under the customs notification when shown to have been used in the initial assembly of the Synchronous Condenser classified under Heading 85.01.

Analysis: The end-use certificate filed with the revision application established that the imported components, namely auxiliary contact and release, had in fact been used in the initial assembly of the Synchronous Condenser. On that basis, the departmental representative raised no objection to the claim being allowed under the exemption notification. It was also undisputed that the end product fell under Heading 85.01 of the Customs Tariff Act, 1975.

Conclusion: The imported components were held eligible for exemption under Notification No. 182/78-Customs, and the appeal was allowed with consequential refund.

Final Conclusion: The assessee succeeded in establishing entitlement to customs exemption on actual end use, and the duty consequence was set aside in its favour.

Ratio Decidendi: Where imported goods are shown by the end-use certificate to have been used in the prescribed initial assembly of the notified end product, exemption under the customs notification is admissible.

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