Exemption for imported spare parts denied where classification excluded them from the claimed tariff heading

Imported spare parts falling under Chapter Heading 84.83 could not be treated as goods classifiable under Heading 98.06 because Note 7(d) of Chapter 98, read with Notification No. 132/87-Cus., excluded parts of machinery having general application notified by the Central Government. As Notification No. 69/87-Cus. applied only to parts falling under Heading 98.06, the exemption was unavailable once the goods were excluded from that heading. The commentary also notes the settled principle that any ambiguity in exemption provisions is resolved in favour of the Revenue.

---

---

Issues: Whether the appellants were entitled to exemption under Notification No. 69/87-Cus. for the imported spare parts, in view of Note 7(d) of Chapter 98 and Notification No. 132/87-Cus., which excluded goods falling under Chapter 84.83 from Chapter 98.06.

Analysis: Note 7(d) of Chapter 98 excludes from Heading 98.06 parts of machinery having general application that are notified by the Central Government in the Official Gazette. Notification No. 132/87-Cus. was issued under that note and specifically notified goods falling under Chapter Heading 84.83 as goods covered by the exclusion. Since the goods in question fell under Chapter 84.83, they could not be classified under Heading 98.06. Notification No. 69/87-Cus., which granted exemption to parts falling under Heading 98.06, therefore could not apply. In exemption matters, any ambiguity is to be resolved in favour of the Revenue.

Conclusion: The appellants were not entitled to the claimed exemption and the appeal failed.

---