TaxTMI 
TaxTMI 
1991 (5) TMI 147
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.... (i) Licence No. 1/5(8)-5/EE1/61 dated 6-9-1961 for (a) Paper/Metallised polypropylene film capacitors and (b) Industrial condenser for power improvement; and (ii) Licence No. CIL - 74(79) dated 6-4-1979 for power capacitors. As per these licences and the details mentioned in the letter No. 1660 (86) IL-SCS dated 20-4-1987 addressed to the importer by the Department of the Industrial Development that plastic film capacitors and power capacitors are two entirely distinct and distinguishable entities. 3. In the Import and Export Policy 1988-91, all types of Plastic film capacitors appear under Sr No. 11(6)(ii) of Entry No. 831 of Appendix 6, list 8, part 1 whereas power capacitors all types, except community type, find a mention against entry No. 592 of Appendix 3, Part A. Hence power capacitors and plastic film capacitors have been differenciated from each other in the context of Import Policy also. 4. Plastic film capacitors are made of plain or metallised plastic film and foil. They are miniature in size. Their capacitors is very low. They are mainly used for by-pass/filteration compling in electronic eq....
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....d with the Assistant Collector on the finding that Hazy P.P. film and plain P.P film are not one and the same. He has held that "P.P. film (Hazy)" would also constitute a part of "plain P.P. film category". He has observed that the technical literatures and, trade acceptance only recognises the distinction as between "smooth" and "Hazy" film and both these categories would constitute parts of the generic 'plain' P.P. film. 8. After examining the various technical literature, the learned Collector has given a finding that capacitors using polypropylene films as dielectric are also referred to as a category in the power capacitor technology. The learned Collector took into consideration the following materials - (i) the reference contained in Import Export Policy 1988-91 including these 2 categories of 'capacitors' under separate appendixes and (2) the recognition for 'power capacitors' as distinct entity under some notification issued under Customs Tariff Act. For example, Notification No. 91/89 dated 1-3-1989 in Sr. No. 9 speaks of capacitors excluding paper capacitors, power capacitors, medium and high frequency capacitors and disc ceramic capacitors. From this, the Colle....
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....es) and not intended for benefit where such films were used in the manufacture of medium and large sized capacitance units such as the power capacitors which do not constitute 'electronic item', the imported item, therefore, can get the benefit of the notification in question. 9. The appellants in this appeal have seriously challenged these findings of the lower authorities and have contended that there is no dispute with regard to the imported goods falling within Item 45 of the table annexed to the Notification No. 345/86 dated 16-6-1985 and also there is no dispute of the item imported for manufacture of capacitors. The capacitors manufactured out of plastic films can only be regarded as plastic film capacitors and hence the imported item is clearly entitled for the benefit of the said notification. 10. They have further stated that the expression 'plastic film capacitors' appearing in item 45 of the table annexed to the said Notification No. 345/86 dated 16-6-1986 is clearly a description of capacitors based on raw materials used for the manufacture of capacitors. If a capacitor is manufactured out of plastic film, it has to be regarded as 'plastic film capacitor' within ....
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....enue. 12. Shri Khaitan reiterating the grounds of appeal, urged that while construing a notifications, materials outside the notification cannot be looked into and the Collector had therefore, committed a serious error in so doing while admitting the use of P.P. film in the use and manufacture of power capacitors. He further contended that power capacitor cannot have different identity with film capacitor and the Collector's reliance on licence and other materials to draw a different conclusion was not based on technical literature nor on the basis of ISI specification on the basis of common parlance and Trade understanding. Therefore, the Collector had proceeded on a general basis and had totally misconstrued the notification. A notification has to be plainly read without giving any supposed intendment and the Collector had read more than what was stated in the notification. The Collector cannot read the notification in the light of licence or Import Policy or Customs Tariff and give a different interpretation to the notification than what could be gathered by simple reading of the notification. He contended that the Collector has misapplied the notification to mean that the po....
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.... - 1. M/s. Hemraj Gordhandas v. Asstt. Collector of C.E. Customs & Others [1978 (2) E.L.T. J350]. 2. Mysore Indl. Plastic Corporation v. Collector of Customs, Madras [1983 (12) E.L.T. 845]. 15. We have carefully considered the submissions made by both the sides and perused the order of the lower authorities. The simple question that arises for our consideration is as to whether the imported item is entitled to the benefit of the Notification No. 345/86 dated 16-6-1986. The relevant portion of the said notification is reproduced below - "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in column (3) of the Table hereto annexed and falling within the Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in the corresponding entry in column (2) of the said Table, when imported into India for the purpose of manufacture of the goods specified in the corresponding entry in column (4) of the said Table, from (a) so much of that portion of the duty....
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....ants, has been amended on 20th April, 1987 as follows - Item of Manufacture Annual capacity (i)  Capacitors of all types   2.2 (Two point two million Nos). (ii)  Capacitors of all types   25,000 (Twenty-five thousand) KVAR The appellants have given an undertaking to produce an end-use certificate to this effect and also to amend the Bond to the satisfaction of the Asstt. Collector. The appellants have contended that in trade parlance and common usage, it is understood that 'plastic film capacitors' means any capacitor manufactured out of plastic films. They have relied upon the technical literature as well as ISI Specification IS: 1885 (Part 42) 1985 as well as ISI specification for shunt capacitors for power system IS-2834-1986. These materials are sufficient to come to conclusion that the imported item is used for the manufacture of the plastic film capacitors for which the notification in question is intended. But, however, the learned Collector has read into the notification more than....