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2. In relation to the same business activity:

(i) Whether re-import of engine modules necessary for provision of the services to Indian airline companies would be exempt from payment of Basic Customs duty under Entry 346D of Notification Number 21/2002-Cus dated March 1, 2002 (as amended)?

Alternately

(i) Whether re-import of engine modules necessary for provision of the services to Indian airline companies would be exempt from payment of Basic Customs duty under Entry 348 of the Notification Number 21/2002-Cus dated March 1, 2002 (as amended)?

(ii) Whether re-import of engine modules necessary for provision of the services to Indian airline companies would be exempt from payment of Additional Customs duty under Entry 54B of Notification No. 6/2006-CE dated March 1, 2006 (as amended)?

3. The claim for basic customs duty exemption in respect of the proposed activities is founded on the notification No. 21/2002-Cus dated 1.3.2002 as amended from time to time. By this notification issued under Sub-section (1) of Section 25 of Customs Act, the Central Government exempted the imported goods of the description specified in column 3 of the Table and falling within the Chapter, Heading or sub-heading of the First Schedule to Customs Tariff Act as specified in the corresponding entry of the column 2 of the Table from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column 4 of the said Table, subject to the conditions if any specified in column 6 of the Table. It also exempts additional duty payable under Section 3(1) of Customs Tariff Act in respect of certain goods specified therein, but, the goods in question do not enjoy any exemption under this notification.

5. Raw Materials [vide Question No. 1(a)] "Raw material for manufacture or servicing of air-craft" - that is the terminology used in the Notification (21/2002-Cus). Does it include consumables such as lubricants, oils and greases? Obviously, the answer should be in the negative. They are not raw-material even in the widest sense of the expression. Common parlance and dictionary meaning - both negate the interpretation suggested by the applicants counsel.

(a) The meaning of the word 'raw material' as given in various dictionaries may be noted:

(i) If the intention had been to exempt third party import also, specific mention should have been made in the notification itself such as in the case of Notification 51/96, according to which the goods imported by or for delivery to public funded research institutions or institutions of scientific and industrial research, are exempted from duty. Another example pointed out is Sl. No. 346-B of the Notification 21/2002.

(1) If third party import was intended to be covered by the notification, specific conditions such as an undertaking/end use certificate would have been stipulated in order to ensure proper utilization of goods for the specific purpose.