Judgment:
1. The appellant imported a consignment of refined glycerine TG 99% minimum from Bangladesh and claimed the benefit of exemption Notification 252/90 fixing the concessional rate of duty of 45% on goods falling under 1520.10 and 1520.90. The former sub-heading as applicable to the Notification covered only crude glycerine. The Department issued demand for differential duty holding that the benefit availed of by them was not applicable to refined glycerine as the benefit of the Notification was applicable in respect of goods falling under Tariff Heading 1520.10 to only crude glycerine. The amount was paid under protest by the appellants. After the case was adjudicated by the Assistant Collector and their appeal to the Collector of Customs (Appeals) rejected, the present appeal has been filed.
2. Arguing the case of the appellant, Ms. Tamali Wad, learned Counsel submitted that the Notification covers not only crude glycerine falling under Tariff sub-heading 1520.10 but also other goods of 1520.90. It is her contention that the products imported by them should fall under this Heading if the original claim made by them for classification under 1520.10 was held to be not correct and that sub-heading covered only crude glycerine. In this connection she referred to the wording in the relevant entry in the Tariff which reads glycerol (glycerine) crude; glycerol waters and glycerol lyes. It was their understanding that this sub-heading in so far it related to glycerol covered glycerol or glycerine of all grades including crude and that the refined glycerine also fell under this Tariff Item. It was on that basis that they had declared classification under 1520.10 which classification had been accepted by the Department for completion of the assessment. The Notification covers both these sub-headings and kept out of its purview only glycerol water and glycerol lyes which, though falling under 1520.10, were not specifically covered in the Notification. In the circumstances, she pleaded that the appeal be allowed and relief granted.
3. In reply Shri H.K. Jain, SDR reiterated the findings contained in the impugned order and supported the same.
4. The arguments have been considered. We have also perused the record.
Appellant had declared the classification under Tariff Heading 1520.10 which covers glycerol whether pure or not and claimed the benefit of exemption Notification in question and paid concessional rate of duty of 45%. Subsequently, the Department has found that the relevant entry in the Notification viz. SI. No. 12 thereof, while mentioning the sub-heading 1520.10 restricted the benefit to only glycerine, crude. It is possible to agree with the argument that this entry in the Exemption Notification would cover only glycerol or glycerine crude. Since it is the admitted position that the product imported by the appellant is refined glycerine, it would definitely not be covered by this entry in the exemption Notification; but that is not the end of the matter as far as the exemption is concerned, since the other component of Tariff Heading 1520 viz. 1520.90 is also taken care of in the Notification.
This entry as appearing in the Tariff reads "other, including synthetic glycerol". Against this Tariff Heading 1520.90 figuring under column 2 of the Table of the Notification the corresponding entry in column 3 ibid reads "all goods". That means all goods covered in sub-heading 1520.90. Since this sub-heading is a residual entry under Heading 1520, goods falling under that heading but not covered under sub-heading 1520.10 would be covered by sub-heading 1520.90. In other words, pure or refined glycerine, not being glycerine falling under 1520.10, will fall under 1520.90 and since the latter. Heading 1520.90 is covered in the Notification, the benefit of exemption will be available to refined glycerine. Hence notwithstanding the mistake on the part of the appellant in declaring the classification under 1520.10, their claim for the benefit of exemption Notification would not suffer any damage since the Notification covers refined glycerine also. In the circumstances, the impugned order is set aside and the appeal is allowed with consequential benefit. Action in this regard will have to be regulated in terms of Section 11B of Central Excise Act as amended.