Customs, Excise and Gold Tribunal - Delhi
Northern Plastics Ltd. vs Cc on 9 March, 2004
Equivalent citations: 2004(96)ECC187, 2004(178)ELT299(TRI-DEL)
JUDGMENT
K.K. Usha, President (J)
1. The appeal is at the instance of the importer. The appellant imported five consignments of Medical X-Ray Films in Jumbo Rolls against Bills of Entry filed between 23.9.99 (sic 23.9.88) to 10.10.88 and availed the benefit of Notification No. 176-Cus. dated 14.6.93. The Assistant Collector later took the view that the appellant is not entitled to the benefit of the Notification and a duty of Rs. 10,62,466 was confirmed against the appellant. The appeal filed before the Collector of Customs (Appeals), Bombay was rejected on the ground that the appellant has not satisfied the condition contained in Clause (b) of the Notification.
2. The relevant Notification reads as follows:
"Partial exemption to Jumbo rolls of X-Ray Films and Roll Films -- In exercise of the powers conferred by Sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in column (3) of the Table annexed hereto and falling under Chapter 37 of the First Schedule to the Customs Tariff Act, 1973 (51 of 1975), when imported into India, from so much of that portion of the duty of Customs leviable thereon under the said First Schedule, as in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table:
Provided that the exemption contained in this notification shall apply only if--
(a) the importer undertakes conversion of the said goods by slitting or confectioning into finished products; and
(b) the importer holds an industrial licence under the Industries (Development and Regulation) Act, 1951 (65 of 1951) for slitting and confectioning of photo-sensitized materials from jumbo rolls.
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Sl. Omitted Description of Rate No. goods
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(1) (2) (3) (4)
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1. Omitted Jumbo Rolls of 60 per cent Roll Films ad valorem.
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2. Omitted Jumbo Rolls of 40 per cent Medical X- ad valorem Ray Films
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3. Omitted Jumbo Rolls of 40 per cent Industrial X- ad valorem.
Ray Films
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Explanation: For the purposes of this notification, the expression 'jumbo rolls' means rolls of width one metre or more and of length 400 metres or more."
The appellant had applied for a licence under the Industries (Development and Regulation) Act, 1951 for slitting and confectioning of photo-sensitised materials for Jumbo Rolls on 16.12.86. The licence was issued on 7.12.88. The licensing authority under letter dated 8.4.87 had informed the appellant that it can carry on business with small scale registration till a regular COB licence is issued to it and that the Ministry have no objection in Customs clearing consignment of jumbo rolls as per prescribed rules. It is to be noted that even before the requirement of taking the licence came into force the appellant was carrying on the same business. The appellant refers to a letter dated 20.9.93 addressed by the Desk Officer, Government of India, Ministry of Industry, Department of Industrial Development informing the appellant that the COB licence issued to the appellant was deemed to be in force from the date of the Notification dated 18.7.86 under which the industry was brought under compulsory licensing. By letter dated 9.11.93 the Deputy Secretary to the Government of India also informed the appellant that the licence will take effect from 18.7.86.
3. In spite of the above materials the authorities below took the view that at the time of import the appellant had no licence and therefore, it has not satisfied that condition contained in Clause (b). Before us the learned DR would submitt that the appellant had no licence to slit medical films and therefore, it had not satisfied the condition in the notification. We find no merit in the reasons given in the impugned order for denying the benefit of the notification to the appellant. As mentioned earlier, the licensing authorities have treated the licence to be in effect from 18.7.86. If that be so, at the time of import between 23.9.88 to 10.10.88 the appellant should be treated as holding the licence. The present contention of the Revenue is also without any merit. Clause (b) refers to a licence for slitting and confectioning of photo-sensitised materials for jumbo rolls. There is no requirement of a licence for slitting and confectioning medical X-ray films imported by the appellant. Letter dated 2.11.94 addressed by the Director, Government of India, Ministry of Industries, Department of Industrial Development to the appellant would clearly show that the photo sensitised materials in respect of which the licence is required would take in only (1) cinema films, (2) photographic amateur film, and (3) photographic printing paper. If that be so, there is no requirement for taking the licence at all in respect of medical x-ray film.
4. For all these reasons, we find that the order impugned is unsustainable. We, therefore, set aside the same and allow the appeal.