Concessional customs duty for textile-machine shuttles upheld where Chapter 98 and the exemption notification covered Heading 8448 goods.

Imported textile-machine shuttles classified under Heading 8448 were treated as eligible for concessional customs duty under Chapter 98 and the relevant exemption notification because Chapter 98 extended to goods and parts falling within Chapter 84. The exemption under Notification No. 69/87-Cus. was applied to parts and accessories under Heading 8448, and the benefit was available at the stage of initial assessment itself. The rejection of the refund claim was found to rest on an unduly narrow reading of the notification and Chapter 98, while contemporaneous assessment of similar Bills of Entry supported the assessee's claim.

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Issues: Whether the imported shuttles for textile machinery were eligible for the benefit of concessional customs duty under Chapter 98 and the relevant exemption notification despite their classification under Heading 8448.

Analysis: The goods were classified under Heading 8448, but Chapter 98 was held to cover goods and parts falling under Chapter 84 as well. The claim was supported by Notification No. 69/87-Cus. dated 01-03-1987, which provided the applicable concessional treatment for parts and accessories falling under Heading 8448. The authorities below had rejected the claim on an unduly narrow view, without properly appreciating that the benefit was available at the stage of initial assessment itself when the goods were classified under Chapter 84. The contemporaneous treatment of similar Bills of Entry also supported the appellant's position.

Conclusion: The imported goods were held eligible for the benefit under Chapter 98 and the exemption notification, and the rejection of the refund claim was set aside in favour of the assessee.

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