2013 (12) TMI 1147 - AT - Customs

Imported Magnesite Spinal Bricks qualify for duty exemption, tribunal grants waiver petition

The tribunal found that the appellant had imported Magnesite Spinal Bricks eligible for duty exemption benefits, supporting their waiver petition. The ... Waiver of pre deposit - Benefit of duty exemption - Import of Magnesite Refractory Bricks - Held that:- appellant had imported Magnesite Spinal Bricks is not disputed nor the fact that the said bricks have been used in the factory premises in the kilns. It is also seen that the standard input and output norms has specifically indicated the import of “Magnesite Refractory Bricks” or “Magnesite Spinal Bricks”. At Sl. No. 3 at A1050 of the standard norms it is seen that the standard input and output norms has given only broad heading and the McGraw-Hill dictionary of scientific, technical terms, specifically gives the meaning of Spinal Bricks which is a type of brick composed of magnesium oxide with about 15% of other oxides. It is undisputed in this case that the goods which were imported by the appellant is of magnesium oxide and 15% of other oxide contents contains which is aluminium oxide. We find prima facie that the HSN notes also supports the case of the appellant, i.e. Magnesite Spinal Bricks would cover the Magnesite Refractory Bricks - Prima facie case in favour of assessee - Stay granted. Issues:Waiver of pre-deposit of an amount, duty exemption benefit, import of Magnesite Refractory Bricks, eligibility for DFRC and DFIA benefits, discrepancy in declaration regarding use of imported goods, differentiation between Magnesite Refractory Bricks and Magnesite Spinal Bricks, duty liability discharge.Analysis:The appellant filed a stay petition seeking the waiver of pre-deposit of a substantial amount related to the import of Magnesite Refractory Bricks and associated penalty. The appellant argued that they correctly imported the bricks under specific schemes and utilized them in their manufacturing process, emphasizing the compliance with standard norms and eligibility for duty exemption benefits. The appellant highlighted that the content of the imported bricks, including the presence of 15% other oxide, was undisputed, and the usage of the bricks in their factory premises was not in question. The appellant contended that the imported goods fell within the permissible scope for DFRC and DFIA benefits, supporting their case with relevant documentation and technical definitions.On the contrary, the respondent contended that there were discrepancies in the declaration regarding the use of imported goods and pointed out differences between Magnesite Refractory Bricks and Magnesite Spinal Bricks, arguing that the goods imported did not qualify for duty exemption benefits. The respondent raised concerns about a shortage of refractory bricks as acknowledged by the appellant's director and manager, suggesting potential non-compliance with regulations. The respondent also highlighted the distinct classifications of the two types of bricks under Customs Tariff Headings, implying a duty liability that the appellants should have fulfilled.After careful consideration, the tribunal found that the core issue revolved around the nature of the imported bricks and their eligibility for duty exemption benefits. It was established that the appellant had indeed imported Magnesite Spinal Bricks with a specific composition, which aligned with the permissible criteria for duty exemption. The tribunal noted that the standard norms and technical definitions supported the appellant's position, indicating that Magnesite Spinal Bricks encompassed Magnesite Refractory Bricks. Based on this analysis, the tribunal concluded that the appellant had presented a prima facie case for the waiver of the pre-deposit amounts involved. Consequently, the tribunal allowed the applications for waiver and stayed the recovery of the amounts until the appeals were disposed of, ensuring a fair and just resolution in light of the legal and factual complexities presented during the proceedings.