Customs exemption claim under Notification 65/88-Cus remanded for fresh consideration after separate liability assessment

Claim for benefit under Notification No. 64/88-Cus was not pursued, while the alternative claim under Notification No. 65/88-Cus had been raised but not examined by the adjudicating authority. Because liability under Notification No. 65/88-Cus had to be worked out separately, the matter required fresh consideration after deposit of the quantified amount and after giving the appellants an opportunity of hearing. The impugned order was set aside and the issue of eligibility under Notification No. 65/88-Cus was remanded for reconsideration.

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Issues: Whether the demand of customs duty warranted remand for reconsideration of the appellants' claim under Notification No. 65/88-Cus when the benefit of Notification No. 64/88-Cus was no longer being pressed.

Analysis: The claim under Notification No. 64/88-Cus was not pursued, and the alternative claim under Notification No. 65/88-Cus had been raised before the adjudicating authority but was not examined. Since the duty liability under Notification No. 65/88-Cus had to be worked out separately, the matter required fresh consideration by the adjudicating authority after deposit of the quantified amount and after granting an opportunity of hearing.

Conclusion: The impugned order was set aside and the matter was remanded for reconsideration of eligibility under Notification No. 65/88-Cus, subject to deposit of the specified amount.

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