1997 (10) TMI 66

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....rate of customs duty on the basis of Notification No. 49/F. No. Bud (Cus.)/78, dated March 1, 1978 can be held to be applicable in respect of the said Electronic Pitch Tester Attachment. 2. By Notification No. 49/F. No. Bud (Cus.)/78, dated March 1, 1978 issued in exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act exemption had been granted in respect of goods specified in the table to the said notification and falling within Chapter 90 of the First Schedule to the Customs Tariff Act, 1975 when imported into India from so much of that portion of the duty of customs leviable thereon, as was in excess of 25% ad valorem. "Gear Profile and Helix Tester" was mentioned at Serial No. 2 of the table. 3. &nbsp....

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....id :- "The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee - assuming that the said principle is good and sound - does not apply to the construction of an exception or an exempting provision; that they have to be construed strictly. Appellant person invoking an exception or an exempting provision to relieve him of the tax liability must establish clearly that he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go to the State." 5. In the present case, the Tribunal after referring to the mode of working of the Pitch Tester, as mentioned in the catalogue of the manufacture, has observed :- "The purpose of this equipment is to complete a testing of ....

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....o be an accessory of the Helix Tester imported by the respondent. 7. Shri V.J. Francis, the learned Counsel for the respondent, has urged that since an attachment cannot be operated independently of the main machinery, it should be treated as a part of the machine and, therefore, the benefit of the concessional rate of duty under the Notification dated March 1, 1978 should be extended to the attachment. We are unable to agree. The mere fact that the Electronic Pitch Tester Attachment cannot be operated independently of the main machine does not mean that it is not an accessory and is a part of the machine. Even in the absence of the said attachment the machine can be operated. Once it is held that the Electronic Pitch Tester Attachment i....