2002 (10) TMI 166

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....manufacture Injection Moulding Machines for the manufacture of which they imported certain critical sub-assemblies; that the imports are covered by suppliers warranty for faultless performances inclusive of repair replacement free of charge; that they had imported certain control systems containing various printed circuit boards and modules through Ahmedabad Airport; that some of the imported goods developed defects during the manufacture, testing and accordingly, were returned to the supplier for replacement; that when the replacement goods were imported they claimed the benefit of Notification No. 80/70-Cus. which had been denied to them on the ground that the benefit of the said notification is available if the goods were brought from a ....

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....n placed on the decision in the case of Sundaram Fasteners Ltd. v. C.C.E, Madras - 1987 (29) E.L.T. 275 (T) wherein it was held that the condition under Notification that exemption shall be allowable on the observance after procedure set out in Chapter X of the Central Excise Rules is directory and such condition being impossible to comply with because of the action of the Revenue should be taken to have been dispensed with so long as there has been substantial compliance with the requirement of Chapter X procedure on facts. Learned Advocate also mentioned that the articles imported, which turn defective, were property of the appellants at the time of import and therefore, the requirement of the condition (i) has been satisfied; that it has....

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....xempts articles and component parts thereof when imported for the replacement of defective articles or component parts thereof subject to the following conditions, namely - (i)       The defective articles were brought into India earlier from places outside India and are private personal property of the importer; (ii)     ….. (iii)    repairs including replacement of the defective parts are done free of charge by the manufacturer through his agent or branch in India; and (iv)    …… The Commissioner (Appeals) in the impugned order has given his specific finding that Condition No. (iii) of the notification has not been satisfied because repair....