2013 (11) TMI 700 - AT - Customs

Tribunal allows amending Bills of Entry for duty exemption, citing lack of evidence, grants notification benefits.

The Tribunal dismissed the stay applications regarding exemption from duty on imported raw materials for job work. It allowed amending the Bills of Entry ... Stay application - Benefit of notification No. 32/97-Cus dated 01.04.97 - Dealing in Polished granite slabs - Violation of conditions of Notification - Held that:- prima facie, there is no reason why the benefit of notification No. 32/97-cus should be denied to the importer of the granite slabs - Commissioner (Appeals), on the facts of this case, allowed amendment of the relevant Bills of Entry substituting Swathi Enterprises for New Karunai Granites as importer. To our mind, this is a rational decision taken by the Commissioner (Appeals) to obviate the minor procedural infraction found in the transaction. It is to be noted that Swathi Enterprises whose name has been allowed to be substituted for New Karunai Granites as importer in the relevant Bills of Entry has been given the benefit of notification in respect of two consignments of identical goods imported by them in November ‘2011 and the Customs authorities have no objection in this regard. Perhaps, the only factual difference between the transaction of November2011 and the transaction in question is that Swathi Enterprises did not have Central Excise registration, when they imported the past consignments, for the sake of complying with condition No.(v) of the notification. But, this is too minor a procedural defect to be projected by the appellant, given the fact that New Karunai Granites undisputedly complied with the said condition No.(v) of the notification - Stay granted. Issues involved:1. Stay of operation of the impugned order regarding exemption from duty on imported raw materials.2. Identification of the importer of granite slabs for the purpose of availing notification benefits.Analysis:1. The department sought a stay on the impugned order related to the exemption from duty on raw materials imported for job work. The controversy arose when the customs authorities examined the particulars of live consignments of polished granite slabs imported by M/s. New Karunai Granites. The claim for exemption under notification No. 32/97-Cus was denied due to alleged non-compliance with certain conditions. The original authority ordered duty assessment, confiscation of goods, and imposed penalties. The Commissioner (Appeals) directed the release of goods to M/s. Swathi Enterprises, allowing amendment of Bills of Entry to substitute Swathi Enterprises as the importer and extending notification benefits to them.2. The Tribunal noted that Swathi Enterprises had imported granite slabs in the past, subjected them to job work, and exported the finished products without any objections from the department. The department did not allege fraud in the current case where the granite slabs were imported for job work, converted into flower vases, and exported to the raw material supplier. The Commissioner (Appeals) permitted amending the Bills of Entry to replace New Karunai Granites with Swathi Enterprises as the importer, considering it a rational decision to rectify a procedural error. The Tribunal found no substantial reason to deny notification benefits to the importer, especially when there was no fraudulent intent observed.In conclusion, the Tribunal dismissed the stay applications, emphasizing that the minor procedural infraction did not warrant withholding the benefits of the notification. The decision was based on the lack of evidence of fraudulent activities by any party involved in the import and job work process.