1992 (12) TMI 55

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.... rise to the litigation are as follows : 2. The appellants are engaged in the manufacture of closed circuit television cameras and for the purpose of manufacture, the appellants are required to import various components including lenses which are optical appliances of a very sophisticated nature. The lenses are liable to payment of excise duty in accordance with Tariff Item No. 90.02 of the Customs Tariff Act, 1975. The relevant entry reads as under : "90.02 Lenses, prises, mirrors and other optical elements of any material mounted being parts of or fittings for instruments or apparatus, otherthan such elements of glass in optical work.       Rate of duty applicable to the instru ments or apparatus to whi....

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....ecified in the corresponding entry in Column 4 of the table annexed to the exemption notification. The exemption of duty was to the extent in excess of rates specified in entry in column 3 of the table. The exemption available in respect of import of items under Tariff Heading No. 85.15 was to the extent of 60% ad valorem. 3. On January 28, 1981, the appellants secured invoices for purchase of 11 pieces of lenses to be imported under open general licence. The appellants filed the bill of entry for home consumption claiming exemption under notification for payment of duty at 60% ad valorem. The Assistant Collector by order dated March 17,1981 rejected the claim seeking exemption on the ground that the goods were correctly assessed under T....

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....ng on behalf of the appellants, submitted that the view taken by the Central Government, the learned Single Judge is not correct. The learned Counsel urged that rate of duty applicable in respect of goods imported and classifiable under Tariff Item No. 90.02 is the rate applicable to the instruments or apparatus to which they are parts of fittings. It was contended that the appellants had imported lenses classifiable under Tariff Item No. 90.02. As those lenses were to be mounted upon close circuit television cameras, the duty payable will be as prescribed under Tariff Item No. 85.15. The learned Counsel urged that once the rate of duty payable under items falling under Tariff Item No. 90.02 is to be determined with reference to the rate ap....