Customs duty concession on non-coking coal held limited to 3%, not 2.5%, under the applicable notification framework.

Non-coking coal did not qualify for basic customs duty at 2.5% under the later notification cited by the importer, because the applicable concessional rate under the customs notification framework remained 3%. The analysis notes that the appellate authority had extended the 2.5% benefit, but the department challenged that extension on the ground that Notification No. 153/2009-Cus., as amended by subsequent notifications, continued to prescribe only 3% for the goods in question. The concession on this point was accepted, and the lower 2.5% rate was held unavailable.

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Issues: Whether the importer was entitled to concessional basic customs duty at 2.5% on non-coking coal, or only at 3% under the applicable customs notifications.

Analysis: The appellate authority had extended the benefit of Notification No. 21/2011-Cus. dated 01.03.2011 to non-coking coal and granted BCD at 2.5%. The department challenged that extension, pointing out that the applicable concessional rate already available under Notification No. 153/2009-Cus. dated 31.12.2009, as amended by Notification No. 135/2010-Cus. dated 31.12.2010 and Notification No. 46/2011-Cus. dated 01.06.2011, remained 3% and had not been further reduced for the goods in question. The concession on the point was accepted.

Conclusion: The benefit of 2.5% BCD was not available on the imported non-coking coal, and the applicable concessional rate was 3% only.

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