2015 (10) TMI 2260 - AT - Customs

Tribunal upholds refund decision, rejects Revenue's appeal based on customs duty exemption notification interpretation.

CC (Prev.) Versus M/s Mrinal International

The Tribunal upheld the Commissioner's decision to grant a refund of additional duty of customs, rejecting the Revenue's appeal. The Tribunal found that ... Refund of Additional Customs Duty levied under Section 3(5) of Customs Tariff Act, 1975 in terms of Notification No. 102/2007-Cus – Revenue contends that Condition No. (b) of the Notification was not fulfilled as the importer had not specifically indicated in invoice that in respect of goods covered therein no credit of additional duty of customs is admissible – Held That:- Commissioner (Appeals) has adequately discussed the issue - Stamp on invoice to the effect that ‘No Credit of Special Additional Duty Available’ satisfies the requirement of Condition ‘b’ of Notification – Found no merits in appeal – Decided against the Revenue. Issues:Refund of additional duty of customs levied under sub-section of Section 5 of the Customs Tariff Act, 1975 in terms of Notification No. 102/2007-Cus. dated 14.09.2007.Analysis:The Revenue filed an appeal against an order granting a refund of additional duty of customs. The main ground of appeal was the non-fulfillment of Condition No. (b) of Notification No. 102/2007-Cus, which required the importer to specifically indicate in the invoice that no credit of additional duty of customs shall be admissible. The Commissioner (Appeals) observed that the stamp indicating 'No credit of the Special Additional Duty available' on the invoices met the requirements of the notification. The respondent explained that the special additional duty was the same as the additional duty of customs levied under the relevant section. The Commissioner held that the stamp on the invoices fulfilled the conditions of the notification, as clarified in a Board's Circular. The Tribunal agreed with the Commissioner's findings and rejected the department's appeal.Upon reviewing the invoices, it was noted that they mentioned the price with VAT but did not show any customs duty, with each invoice bearing a stamp indicating 'No Credit of the Special Additional Duty available.' The Tribunal concurred with the Commissioner's view that the stamp satisfied the requirements of Condition 'b' of Notification No. 102/2007-Cus. The Revenue cited various judgments emphasizing strict construction of exemption notifications and the need for fulfillment of conditions. However, the Tribunal found that in the present case, the condition of the notification was fully complied with, even under strict construction. Therefore, the Tribunal dismissed the Revenue's appeal, citing that the stamp on the invoices met the required conditions for the refund of additional duty of customs levied under the relevant section.