Imported goods exempt from customs duties; Tribunal grants relief citing Notification No. 20/2006-Cus.

The Tribunal allowed the appeal, remanding the case for relief to the appellant, as the imported goods were fully exempt from basic customs duty and countervailing duty during the relevant period, entitling them to the benefit of Notification No. 20/2006-Cus. The Tribunal emphasized that the exemption did not require being unconditional and cited a similar case where goods exempted under a different scheme were granted the benefit. It was clarified that the change exempting SAD under a later notification was irrelevant as the Bills of Entry were dated prior to that modification.

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Issues:
Appeal against denial of benefit of Notification No.20/2006-Cus exempting special additional duty (SAD).

Analysis:
The appellant imported goods under 12 Bills of Entry and claimed exemption from basic customs duty and countervailing duty under Notification No. 54/2003-Cus dated 01.04.2003. However, they were required to pay SAD as it could not be debited to duty-free service entitlement credit certificates. The Commissioner (Appeals) upheld the denial of the benefit of Notification No. 20/2006-Cus, stating that the exemption was only available when goods were exempt from the whole of basic custom duty and additional duty of customs without any conditions. The appellant argued that since Notification 54/2003-Cus fully exempted basic customs duty and CVD, they were entitled to the benefit of Notification No. 20/2006-Cus, citing a relevant judgment.

The Tribunal examined Notification No. 20/2006-Cus, which granted exemption from payment of SAD for goods exempt from basic customs duty and countervailing duty. The Tribunal noted that the exemption did not require the exemption to be unconditional. Even though SAD was later exempted under Notification No. 54/2003-Cus, it was irrelevant for the case at hand as the Bills of Entry were dated prior to that change. The Tribunal emphasized that during the relevant period, the imported goods were fully exempt from basic custom duty and CVD, making them eligible for the benefit of Notification No. 20/2006-Cus. Referring to a similar case, the Tribunal highlighted that import goods were entitled to the benefit of the notification when exempted under a different scheme. Consequently, the Tribunal allowed the appeal and remanded the case for granting relief to the appellant, with the condition that the burden of SAD was not passed on to another party.

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