DUTT - (1.) THE only question that is involved in this appeal preferred under S. 130E, Customs Act, 1962, is whether the appellant is entitled to the benefit of the Notification No. 281-Cus/76, granting part exemption from payment of customs duty in respect of the rod bushes and camshaft bushes imported by the appellant.
(2.) BEFORE we refer to the said Notification, we may notice the provisions of the Heading No. 84.06 and Heading No. 84.63 of the Customs Tariff Act, which are as follows :- JUDGEMENT_492_4_1987Html1.htm The said Notification No. 281-Cus. dated 2-8-1976, as amended from time to time, reads as follows : "Notfn. No. 281-Cus. - The articles specified in column (2) of the Table hereto annexed and falling under Heading No. 84.06 are exempt from so much of that portion of the duty of Customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975, as is in excess of the rate specified in the corresponding entry in column (3) of the said Table. THE TABLE JUDGEMENT_492_4_1987Html2.htm The Assistant Collector and the Collector of Customs (Judicial) overruled the contention of the appellant that the appellant was entitled to the benefit of exemption under the Notification No. 281-Cus/76. The Customs, Excise and Gold (Control) Appellate Tribunal, hereinafter referred to as 'the Appellate Tribunal', dismissed the appeal of the appellant and affirmed the orders of the customs authorities. According to the Appellate Tribunal, the bushings and the bearings are the same and as the bearings come under the Heading No. 84.63 and not under Heading No. 84.06, they are not entitled to the benefit of exemption under the said Notification. Hence this appeal under S. 130E, Customs Act.
(3.) THE Notification grants exemption in part from payment of the customs duty in respect of articles specified in column (2) of the Table and falling under Heading No. 84.06. Heading No. 84.06 refers to 'internal combustion piston engines'. Para 2 of column (2) of the Table annexed to the Notification, which is relevant for our purpose, not only refers to internal combustion piston engines, but also to 'parts thereof. Heading No. 84.06 does not, however, contain or refer to the parts of internal combustion piston engines. It is submitted by the learned Additional Solicitor General that as heading No. 84.06 does not refer to the parts of internal combustion piston engines, the appellant is not entitled to claim any exemption for the bushes, even if they are parts of such engines. Secondly, it is contended by him that even assuming that Heading No. 84.06 also contemplates parts of the engine, such parts must be all the parts of the engine and not a few parts thereof. In other words, his contention is that Heading No. 84.06 will apply when an internal combustion piston engine is imported in a knocked-down condition. Lastly, it is contended that bushes and bearings are the same and identical articles as held by the Appellate Tribunal and, as bearings have been provided for under Heading No. 84.63, the question of any exemption under the Notification does not arise, It is also submitted by the learned Additional Solicitor General that even assuming that the bushes and bearings are not identical articles but they are distinct and separate, yet there is no material for holding that the bushes, which have been imported by the appellant, are parts of the engines referred to in Heading No. 84.06.;