EPCG licence eligibility for imported plastic foil supported customs exemption where notification conditions were satisfied.

Imported plastic foil covered by an EPCG licence was held eligible for the benefit of Customs Notification No. 49/2000-Cus. where the notification conditions were undisputedly satisfied. The binding circular directing extension of the exemption supported that the benefit had to be granted to the importer. Departmental clarification on greenhouse-related goods also indicated that materials used in constructing a greenhouse could fall within the scheme when the licence and notification requirements were met. The operative result was that the exemption benefit was available and the Revenue's challenge failed.

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Issues: Whether the importer was entitled to the benefit of Customs Notification No. 49/2000-Cus. dated 27-4-2000 under the EPCG licence for the imported plastic foil.

Analysis: The imported plastic foil was specifically covered by the EPCG licence, and it was not disputed that the conditions of the notification stood fulfilled. In such circumstances, the benefit of the notification was required to be extended in terms of Circular No. 80/2000-Cus. dated 22-9-2000. The circular was binding on the Revenue. The reliance placed on the departmental clarification concerning greenhouse-related goods also supported the view that goods used for constructing the greenhouse could fall within the scope of the scheme when the licence and notification conditions were satisfied.

Conclusion: The importer was entitled to the benefit of the notification, and the Revenue's challenge failed.

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