1991 (3) TMI 275

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent, thereafter, issued an alleged less charge demand under Section 28 of the Customs Act on the ground that the seals made of ceramic are classifiable under Chapter 69 and not under Chapter 84 of the CTA 1975. Therefore, the benefit of Notification under 117/78 would not be available since Chapter 69 is not mentioned in the First Schedule to the said Notification 117/78. Both the lower authorities have found against the appellants and hence this appeal before the Tribunal. 2. The learned Consultant, Shri K.V. Kunhikrishnan, appearing for the appellants has urged that it is not denied that the ceramic seals are component parts to be used in the manufacture of water pumps assembly, which is exported outside the country. They were allowed to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cation, provided they are parts of the engines mentioned under Heading No. 84.06. The contention of the Customs authorities that the article, which is provided under another Heading other than Heading No. 84.06, will not get the exemption as provided in the Notification, is not readily understandable. When the Notification grants exemption to the parts of the engines, as mentioned under Heading No. 84.06, we find no reason to exclude any of such parts simply because it is included under another heading. The intention of the Notification is clear enough to provide that the parts of the engines, mentioned under Heading No. 84.06, will get the exemption under the Notification and in the absence of any provision to the contrary, we are unable t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it of the said Notification. Mere grant of Duty Exemption Entitlement Certificate or Advance Licence does not entitle the appellants to claim exemption where there is none in terms of the said Notification. Chapter Note 1(b) reads as follows; "(1) This Chapter does not cover: (a) ............. (b) appliances and machinery (for example, pumps) and parts thereof, of ceramic material (Chapter 69); (c).................." As regards the submission for benefit under Section 75 of the Customs Act, the learned Jr. Departmental Representative for the Revenue has stated that there was no such claim before the lower authorities and it is a matter of enquiry into facts whether the ceramic seals have been utilised in the manufacture of water pump a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e function of bearings fell under Tariff Heading 84.63(2) and therefore, the benefit of the Notification 281-Cus., dated 2nd August 1976 was denied to the appellants, Jain Engineering, in that case. There was no dispute on facts that the bushings imported therein were parts of internal combustion piston engines falling under Tariff Heading 84.06. It is, therefore, in the light of the peculiar wordings of paragraph-2 of column (2) of the Table to the Notification 281-Cus., dated 2nd August 1976 that the Hon'ble Supreme Court held that bushings were entitled to the benefit of the said Notification. It also observed that bushings could not be treated as bearings merely for the reason that bushings and bearings perform the same function. The tw....