TaxTMI 
TaxTMI 
1998 (3) TMI 406
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....-7 which is required in the manufacture of LAB. This catalyst is based on platinum. The Appellants imported the catalysts in three consignments on 30-10-1987 and 8-2-1988. The spent catalyst 5060 Kg. and 8580 kgs. were exported to the suppliers in UK under Shipping Bills dated 13-11-1991 and 11-3-1991 for recovery of platinum and reprocessing the catalyst to be re-imported by the Appellant. Three consignments of reprocessed catalyst were imported on 4-4-1992, 13-1-1992 and 3-12-1991 and these were allowed clearance by Customs accepting Appellants claim for exemption for the goods under Notification 204/76 on the ground that it was an article re-imported into India after having been re-exported for repairs and exempted from duty in excess of....
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....rated and recycled. The recycling process involves first the recovery of basic metal and redepositing on the carrier. The process of such regeneration is referred to in the impugned order of the Commissioner of Customs (Appeals). The learned Senior Counsel urged that the process of recovery of platinum from the spent catalyst, addition of some platinum to make good the process loss, and re-building the catalyst is only a process of reconditioning or repair covered by the Notification 204/76. The learned Senior Counsel in this context cited and relied upon the Bombay High Court judgment in the case of Century Spinning & Manufacturing v. U.O.I - 1981 E.L.T. 676 which is comparable on facts with the Appellants case wherein the High Court has h....
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....- 1983 (14) E.L.T. 1927 wherein after considering the Bombay High Court judgment in the case of Century Spinning & Weaving (Supra) the Tribunal held that the process or re-making should be such that it falls short of manufacture. The ld. DR further argued that the DGTD certificate only indicates that the repairing of the spent catalyst cannot be done in India. It also says that the end result of the process carried out abroad is the emergence of a new catalyst and, as such, the lower authorities had rightly held that the goods imported is not eligible for exemption under Notification 204/76. The intention behind the exemption, the ld. DR urged, stands fully clarified by Notification 141/94 wherein the Explanation bars the exemption to goods....
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....n acidic solvent and redeposition of platinum metal in alumina carrier. The Assistant Commissioner observed from the technical write up that the process involved various stages which, according to him, amounted to a manufacturing process at the end of which the platinum metal is impregnated into the new carrier. Hence it was concluded by the Assistant Commissioner that the process carried out by the supplier on the spent catalyst is not one of repair so as to be eligible for exemption under Notification 204/76. The Assistant Commissioner also distinguished the Bombay High Court judgment in the case of Century Spinning & Manufacturing Company by holding that the present case is distinguishable as follows : "The ratio of this judgment howe....
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....oods has been lost. However the High Court found considerable substance in the importer's argument that it was an error on the part of the Customs authorities to hold that the identify of the goods is changed merely because the material of worn out spinnerets was melted and the new spinnerets were manufactured. 7. The High Court held that the importers were right in this contention of theirs. Therefore, we hold that the ratio of the Bombay High Court judgment is applicable to the present case and in this context the certificate furnished from the DGTD has also to be looked into. It reads as follows : "Certified that the machine (s) component (s) of the machine mentioned above, cannot be repaired in the country at present. Paco....
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....the Appellants has also been issued in pursuance of the certificate and the description of the goods therein show export of spent catalyst for recovery of platinum and reprocessing of catalyst and re-import the same after reprocessing. There is a further endorsement in the import licence that the licence is for the second cycle of reprocessing of the catalyst imported against licence dated 14-8-1987 and for which licence dated 6-7-1988 was issued for reprocessing/first cycle/and re-import. It is therefore evident that the licensing authorities have consciously granted the licence considering the activity carried out abroad as one of re-processing of the spent catalyst. The procedure prescribed for the purpose in Para 99 of the Handbook of P....