DTA clearance duty and concessional notification benefit upheld for export unit under binding precedent and policy clarification

DTA clearances by a 100% export oriented unit were treated as assessable on the basis of 50% of the aggregate duties of customs, as the point was already covered by binding Supreme Court precedent in favour of the assessee. The Tribunal also accepted official clarification that, under the applicable export policy and Handbook of Procedures, manufactured goods could be cleared into the Domestic Tariff Area to the extent permitted by policy, not only the item specifically identified by the department. On that basis, concessional benefit under Notification No. 2/1995-CE was allowed for the disputed clearances.

---

---

Issues: (i) Whether duty on DTA clearances by a 100% Export Oriented Unit was to be computed on the basis of 50% of the aggregate duties of customs. (ii) Whether the assessee was entitled to the benefit of Notification No. 2/1995-CE dated 04.01.1995 in respect of clearances of manufactured goods other than panel meters into the Domestic Tariff Area.

Issue (i): Whether duty on DTA clearances by a 100% Export Oriented Unit was to be computed on the basis of 50% of the aggregate duties of customs.

Analysis: The question was already covered by the Supreme Court in the assessee's favour. The Tribunal's earlier view that duty had to be computed on 50% of the aggregate customs duties was therefore treated as settled against the Revenue.

Conclusion: The issue was decided in favour of the assessee.

Issue (ii): Whether the assessee was entitled to the benefit of Notification No. 2/1995-CE dated 04.01.1995 in respect of clearances of manufactured goods other than panel meters into the Domestic Tariff Area.

Analysis: The Development Commissioner's office clarified that, under the applicable policy and the Handbook of Procedures, the assessee could clear the manufactured goods in totality to the Domestic Tariff Area to the extent permitted by policy and not only specific items. The Tribunal acted on that clarification and allowed the concessional notification benefit for the goods cleared into DTA.

Conclusion: The assessee was entitled to the benefit of the notification for the disputed DTA clearances.

Final Conclusion: The impugned order could not stand in view of the binding earlier decision and the clarificatory support from the Development Commissioner's office, and the assessee's claim for concessional duty on the disputed DTA clearances succeeded.

Ratio Decidendi: Where the applicable export policy and official clarification permit DTA clearances of manufactured goods, the concessional notification benefit cannot be denied merely because the goods are not the specifically identified item earlier assumed by the department; and a question already covered by binding precedent cannot be reopened.

---