Incorrect Notifications - Effect
IF in an exemption Notification, the tariff heading is incorrect, but the description of goods is correct, can the exemption be denied?
No, said the Board, more than 16 years ago. In Circular No. dated 13.02.1996, Board clarified,
Exemption notifications where Tariff references and the description of goods may not entirely match, can broadly be grouped into two categories, namely:-
(i) Notifications in which the goods described are such as can never fall under the corresponding Tariff references specified therein. This may happen not only in those cases where the exempted articles are classifiable under a single Chapter / Heading / Sub-heading, but also in those cases where the goods are classifiable under more than one heading (like in cases where goods are described as a broad class - "parts of gas discharge tube").
(ii) Notification which cover goods classifiable under more than one Chapter/ Heading / Sub-heading and only one or some and not all the tariff references have been mentioned. For example, parts of 'gas discharged tube', depending on its nature, are classifiable under Chapter 70,73, or 85. However, in terms of Sr. No. 24 of List A, annexed to notification 64/95 Cus, dated 16.3.95., only such parts which are falling under chapter 85 have been exempted.
2. In respect of the notifications discussed under category (i) above, if the goods are squarely covered by the description but not by the chapter/ heading Nos. and the specified tariff references could never be linked to goods as they are described, then it could only be case of mention of incorrect Chapter No. / Heading No./or Sub-heading No. and may be due to inadvertence and therefore should not be a basis of the denial of exemption. xxx
3. This clarification is equally applicable in all such cases and it is reiterated that the benefit of exemption will be available to these goods even though the articles mentioned in the notification are not covered by the Chapters/ headings Nos./ Sub-heading Nos. mentioned in the notifications.