2003 (9) TMI 423 - AT - Customs

Appellate Tribunal Upholds Commissioner's Decision on Coal Import Exemption

The Appellate Tribunal upheld the Commissioner's decision regarding the import of coal under a special ad-hoc exemption notification for thermal power ... Stay of operation of Commissioner (Appeals) order Issues:Stay of operation of Order-in-Appeal regarding import of coal under special ad-hoc exemption Notification No. 72/92 for thermal power stations in Tamilnadu.Analysis:The Commissioner sought stay of Order-in-Appeal regarding the import of coal under Notification No. 72/92 for thermal power stations in Tamilnadu. The dispute revolved around the requirement of importing 'good quality coal' as per the notification. The Revenue argued that the coal imported did not meet the specified calorific value of 6400 K. Cal. per Kg. as per the contract with the supplier, thus failing to satisfy the terms of the notification. The Commissioner, however, found that the imported coal had a higher calorific value compared to indigenous coal, meeting the criteria of 'good quality coal' as intended by the notification. The Commissioner's decision was based on the plain language of the notification and the lack of evidence proving the imported coal was of poor quality.The Appellate Tribunal examined the notification and upheld the Commissioner's decision, stating that there was no grave error in the order and it was legally sound. The Tribunal agreed that the imported coal met the requirements of the notification and that the Commissioner's reasoning was correct. It was noted that the burden of proof had been discharged by the respondents, showing that the imported coal had better calorific value than the indigenous coal. The Tribunal emphasized that the Revenue failed to provide sufficient evidence to challenge the Commissioner's findings, leading to the rejection of all five stay applications. Despite the high revenue involvement, the Tribunal agreed to expedite the appeal hearing as requested by both parties, scheduled for a specific date.In conclusion, the judgment centered on the interpretation of the special ad-hoc exemption notification for importing coal for thermal power stations in Tamilnadu. The dispute over the quality of imported coal was resolved in favor of the respondents, as the Tribunal found that the imported coal met the criteria of 'good quality coal' specified in the notification. The decision highlighted the importance of adhering to the terms of such notifications and the need for clear evidence to challenge the compliance with specified standards.