Customs exemption for imported shaft upheld in principle, with refund remanded for verification of notification conditions

Imported vertical main shaft was treated as eligible in principle for exemption under Notification No. 350/76-Customs because it formed part of the initial assembly of a bowl mill covered by the relevant tariff heading. The department did not contest the notification's general applicability, but required verification of the remaining conditions, including end-use certification. The refund claim was therefore held maintainable in principle and remanded to the Assistant Collector for sanction after verification of compliance with the notification requirements.

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Issues: Whether the imported vertical main shaft was entitled to the benefit of exemption Notification No. 350/76-Customs and whether the refund claim should be remanded for verification of compliance with the notification conditions.

Analysis: The refund claim was supported on the footing that the vertical main shaft formed part of the initial assembly of a bowl mill, the bowl mill was covered by the tariff heading specified in the exemption notification, and the duty relief under the notification corresponded to the refund amount claimed. The department did not dispute the availability of the notification in principle, but sought verification of fulfillment of the notification conditions, including end-use certification. The appellants accepted that course.

Conclusion: The claim was held tenable in principle under Notification No. 350/76-Customs, and the matter was remanded to the Assistant Collector for sanction of the claim upon verification of compliance with the remaining conditions.

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