Per P.G. Chacko : The appellants had imported EVA film sheet and filed a Bill of Entry on 14.2.97 for its clearance claiming, inter alia, the benefit of Central Excise Notification No. 205/88 dt. 25.5.88 (Sl.No. 18) in respect of Additional Duty of Customs (CVD). The said Notification had granted full exemption from payment of duty of excise on "parts consumed within the factory of production of such parts for the manufacture of goods specified at Sl.Nos. 1 to 17". The item mentioned at Sl.No. 10 of the Table annexed to the Notification was "Solar photovoltaic modules and panels for water pumping and other applications". The film sheet imported by the appellants was an input for these `solar photovoltaic modules and panels'. Both the original authority and the first appellate authority took the view that the benefit of the Notification in terms of Sl.No. 18 thereunder would be available only to parts captively consumed within the factory of production of the solar equipment and not to raw material consumed in the manufacture of such parts within the factory. On this basis, a demand of duty of CVD of Rs. 58,822/- stands against the assessee. Hence the present appeal.

2. Shri Ragunaathan, Managing Director of the company, submitted that EVA film sheet was not manufactured in this country and hence the same was necessarily to be imported for the purpose of manufacturing 'Solar photovoltaic modules and panels'. He submitted that it was with intent to popularize non-conventional energy sources such as 'Solar photovoltaic modules and panels' that the Central Government decided to make this item economical for the common people and, accordingly, granted exemption from payment of duties of customs on inputs like EVA film imported by the domestic manufacturers of the above solar equipments. The legislative intent, according to him, was to exempt manufacturers of the solar energy devices from duty liability in respect of inputs which were not manufactured in the country and had to be imported. It was, accordingly, prayed that the decision of the lower authorities be set aside and the benefit of the Notification be granted.

3. Ld. SDR reiterated the findings of the lower authorities.

4. After giving careful consideration to the submissions, we find that the Notification, in terms of Sl.No. 18 therein, granted full exemption from payment of duty of excise on "parts consumed within the factory of production of such parts for the manufacture of goods specified at Sl.No. 1 to 17 above". Learned Commissioner (Appeals) observed that "the goods imported are consumed/used in the production not of parts but of the finished goods viz. solar photovoltaic module". Obviously "parts consumed within the factory of production of such parts" were misunderstood as "parts consumed in the production of such parts". To consume something in its own manufacture does not make sense. Consequently, the view taken by the lower authorities cannot be accepted as logical. Such a view is not justice-oriented either as it is inconsistent with legislative intent. A provision such as Sl.No. 18 of the Table annexed to Notification No. 205/88-CE, apparently suffering from the vice of having been ill-drafted, needs to be construed with reference to the legislative intent. As rightly pointed out by the appellants' representative, the Notification intended to make non-conventional energy devices such as "Solar photovoltaic modules and panels" cheaper to the common people by exempting parts thereof manufactured and captively consumed in a factory in India from payment of duty of excise as also by exempting identical parts from countervailing duty when imported into India. Hence Sl.No. 18 of the Table annexed to the Notification should be construed as "parts consumed in the manufacture of goods specified at Sl.No. 1 to 17 above". In this view of the matter, the benefit of the Notification is available to the appellants.

5. The impugned order is set aside and this appeal is all