JUDGMENT
K.K. Usha, J. (President)
1. In this appeal, at the instance of the importer the only issue to be considered is whether they are entitled to the benefit of the Notification No. 17/2001, dated 1-3-2001 in respect of the leather imported from Italy. The Adjudicating Authority as well as the Appellate Authority have taken the view that the commodity imported by the appellant is a patent leather and therefore, outside the our view of the notification, referred above. The above finding is under challenge before us at the instance of the importer.
2. According to the appellant, the commodity imported by it is finished leather and therefore, covered by Serial No. 136 in the notification dated 1-3-2001. The serial No. 136 reads as under : –
“Wet blue chrome tanned leather, crust leather, finished leather of all kinds, including splits and sides of the aforesaid.”
According to the appellant, patent leather is nothing but finished leather. In support of the above contention, reliance is placed on Glossary of Terms relating to hides, skins and leather for the purpose of ISI standard.
Definition of ‘finished leather’ reads as under :-
“Finished Leather – Tanned leather processed and finished to the extent that can be used directly without any further treatment for fabrication into industrial and consumer items or parts of such items. Examples of finished leather are ammunition leather, aniline leather, antique leather, apron leather, automobile leather, belting leather, bookbinding leather, box calf, box side, buff leather, capeskin or cape leather, carding leather, carriage leather, case leather, chrome tanned or chrome retan upper leather, chrome sole leather, chrome washers, clothing leather, combing leather, cordovan leather, crown leather, doeskin leather, fancy leather, football leather, fur finished shearling, furniture leather, gasket leather, glove leather, nappa leather, hydraulic (or packing) leather, harness leather, japanned leather, jerkins leather, lace leather, lining leather, meter or diaphragm leather, morocco leather, patent leather, rein leather, russet leather, Russia leather, saddle leather, skirting leather, sole leather, suede leather and upholstery leather.”
The learned Counsel for the appellant has pointed out that above definition of ‘finished leather’ would take in fancy leather and patent leather also.
3. We heard learned Departmental Representative. The case of the Revenue is based on the fact that under Chapter 41 of the Indian Customs Tariff Act, finished leather products have been dealt with between subheading 41.04 to 41.07, whereas chamois leather, patent leather, patent laminated leather and metallised leathers have been grouped under separate and specific Headings 41.08 and 41.09. Therefore, according to the Revenue, the patent leather and finished leather are different commodity. A plain reading of Serial No. 136 of the Notification No. 17/2001 would make it clear that Legislature had intended to confine exemption benefit only to specific varieties of leather products, such as, wet blue and tanned leather and not all types of finished leather.
4. We do not find any merit in the view taken by the Revenue. Going by the definition of the term finished leather, it is clear that patent leather would also be taken by that term. Wet blue chrome tanned leather are hides or skins and that have been chrome tanned but not dyed nor fat liquored. The definition of Crust Leather is as follows :-
“Crust Leather – Tanned hides and skins in natural colour or dyed and dried, requiring further processing like mechanical operations and retanning and finishing operation before fabrication into goods. E.I. tanned hides and skins are a typical example of crust leather. Chrome tanned leather in wet blue further treated with fatliquoring and/or tanning material and dried is another example of such crust leather”.
The above definition would show that that crust leather is not finished leather. It has to undergo further processing. It would also show that chrome tanned leather in wet blue further treated with fatliquoring and/or tanning material and dried is crust leather. Therefore, neither wet blue chrome tanned leather nor crust leather is finished leather. The intention of the legislature is to grant exemption to finished leather of all kinds. Among leather which has not undergone finishing process, exemption is granted only to two categories, wet blue crome tanned leather and crust leather. The different interpretation sought to be given to the notification by the Revenue is totally unacceptable.
5. In the light of the above, we hold that patent leather which is imported by the appellant is also covered by the Notification No. 17/2001. We, therefore, set aside the order impugned and allow the appeal.