Certified defence-use cable accessories remained exempt from customs duty despite being described as raw material.

Heat shrinkable sleeves imported against Defence Ministry-certified orders were treated as eligible for customs exemption as radar spares and accessories, because the import papers, certificate, annexed list and supplier catalogue showed specific part numbers, discrete quantities and direct use as cable accessories for defence cable assembly. The view that the goods were merely running-length raw material was inconsistent with that documentary record and with their certified exclusive defence use, so the exemption under Notification No. 206/76-Customs was upheld and the department's objection rejected. A fresh contention of general-purpose use was not entertained because it was not part of the original challenge.

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Issues: Whether heat shrinkable sleeves imported against Defence Ministry-certified orders were eligible for exemption under Notification No. 206/76-Customs as radar spares and accessories, or whether they were to be treated as raw material and denied exemption.

Analysis: The import documents, Defence Ministry certificate, annexed list and supplier catalogue showed that the goods were identified by specific part numbers, ordered in quantified pieces of 1.2 metres each, and described as cable accessories for direct use in cable assembly for defence purposes. The finding that the goods were merely running-length raw material was inconsistent with the documentary record and with the manner in which the goods were ordered and certified for exclusive defence use. A new factual contention that the sleeves were of general-purpose use was not entertained since it had not formed the basis of the original order under challenge.

Conclusion: The heat shrinkable sleeves were held eligible for exemption under Notification No. 206/76-Customs and the department's objection that they were raw material was rejected.

Ratio Decidendi: Where imported goods are specifically identified by part number, ordered in discrete quantities for certified defence use, and shown to be cable accessories for direct application, they cannot be denied exemption merely by characterising them as raw material.

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