1996 (8) TMI 342

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....85 which was meant for spares for after sale service. They also submitted Certificate from Director of Industries and other related documents. The goods were assessed under Entry 85.15 of the Customs Tariff Act read with Notification No. 232-CUS/83, dated 18-8-1983 at the concessional rate of duty. Show Cause Notice was however issued on 5-7-1985 demanding duty of Rs. 1,95,507.37 ps. as short paid on the ground that the items were cleared under the Licence meant for spares for after sale service, where the benefits of Notification No. 232/83 was not available. The Appellant contested the same and pleaded that the said Notification had no relevancy with the import licence and it only provided for concessional rate of duty if the importer hol....

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....nce meant for import of spares, the ld. Advocate has submitted that at the best, this could be the case of seeking clearance under a wrong licence and there could be a breach from ITC angle, for which proceedings could have been initiated but have not been initiated, but that could not provide any cause for denying the benefit under Notification No. 232/86. 5. Mr. K.M. Mondal, the ld. SDR has submitted that in the Bill of Entry filed they have claimed clearance under Licence, available for import of spares for after sale service and having got the clearance under a specific licence where benefit of Notification No. 232/86 is not available, the Appellants have been rightly denied the benefit and that it is not open to them to now ple....

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....hardly any difference between the spares and components as the components themselves would fall within the category of spares when they are intended to be used as parts ready for replacement. 10. Notification No. 232/86 is intended to give benefit of concessional rate of duty for components imported by Actual user (Industrial). The wordings thereof are absolutely clear to indicate that such concessional rate is available when the components are imported by Actual users (Industrial), for being used as such components in their final product. Reading the same in any other way could be nothing but twisting the main thread running in the same. Appreciably such a line of argument has also not been adduced by the ld. Advocate, though at so....