2016 (11) TMI 1117 - AT - Customs

Imported Goods Must Adhere to Notification Conditions for Duty Exemption

M/s. Amar Jothi Plastics, Sri Swasthik Industries Versus CC (Port - Import), Chennai

The Tribunal upheld that goods imported under Notification No.34/97-Cus must adhere to the conditions of debiting duty elements to the DEPB Pass book for ... Levy of SAD - DEPB Scheme - whether the goods imported by appellants availing exemption under Notification No.34/97 - Cus. dt.7.4.1997 can claim exemption from levy of special additional duty of customs under Notification No. 34/98-Cus. dated 13.06.98 without debiting the same to the DEPB Pass book and without fulfilling condition prescribed by Para 2 of the Notification No.34/97 when claim of exemption is made under Sl.No.13 of the Notification No.34/98? - Held that: - nonfulfillment of three conditions prescribed by para-2 of the N/N. 34/97-Cus. Dt.7.4.1997 denies the grant of N/N. 34/98-Cus. Dated 13.7.98. It may be stated that the phrase “subject to the conditions, if any, specified in the said notification in relation to such goods: - appearing under Sl.No.13 of the N/N. 34/98-Cus. dated 13.7.1998 is neither surplusage nor otios. Grant of exemption from special additional duty of customs was permitted debiting the duty element in DEPB Pass Book. The Circular No.49/98.Cus. dated 20.7.1998 issued by CBE&C explained the position more elaborately and manner of debit entry is explained therein by a mathematical example In absence of any logical reason shown by appellant, its plea that the phrase “subject to the conditions if any, specified in the said Notifications in relation to such goods:” appearing under Sl.No.13 of the Table appended to the Notification No.34/98 was redundant or surplusage, is misconceived. The conditions of notification No.34/97 applies The grant of N/N. 34/98-Cus. Dated 13.6.98 being subject to the conditions of N/N. 34/97-Cus dated 7.4.97, both the appeals fail. Issues:1. Whether goods imported under Notification No.34/97-Cus can claim exemption from special additional duty under Notification No.34/98-Cus without debiting the same to the DEPB Pass book and without fulfilling prescribed conditions.Analysis:1. The appeal revolved around the controversy of whether goods imported under Notification No.34/97-Cus could avail exemption from special additional duty under Notification No.34/98-Cus without debiting to the DEPB Pass book and without fulfilling prescribed conditions.2. Goods imported by the appellant before 01.08.1998 were exempt from basic customs duty and additional duty under Notification No.34/97-Cus. The conditions under this notification required debiting the duty elements to the DEPB Pass book.3. The claim of exemption from special additional duty under Notification No.34/98-Cus was made under Sl.No.13, which referred to goods covered by Notification No.34/97-Cus. The conditions of Notification No.34/97 were integral to claiming exemption under Notification No.34/98.4. The appellant argued that no special additional duty was payable due to subsequent notifications, while the revenue contended that compliance with Notification No.34/97 conditions was necessary for claiming exemption under Notification No.34/98.5. The Tribunal analyzed the notifications and held that the conditions of Notification No.34/97 were essential for claiming exemption under Notification No.34/98. Non-fulfillment of these conditions denied the grant of exemption from special additional duty.6. The Tribunal rejected the appellant's argument that the conditions of Notification No.34/97 should not apply to Notification No.34/98, emphasizing the integral relationship between the two notifications for claiming exemptions.7. Precedents cited by the appellant were deemed inapplicable, and it was clarified that the conditions of Notification No.34/97 were crucial for availing exemptions under Notification No.34/98.8. The Tribunal highlighted that the grant of exemptions was not retrospective, and future benefits could not be presumed from past notifications. The appellant's misunderstanding of the law was addressed.9. Ultimately, the Tribunal concluded that the grant of Notification No.34/98 was subject to the conditions of Notification No.34/97, leading to the dismissal of both appeals.Judgment:The Tribunal upheld that goods imported under Notification No.34/97-Cus must adhere to the conditions of debiting duty elements to the DEPB Pass book for claiming exemption from special additional duty under Notification No.34/98-Cus. The interdependence of these notifications was crucial for granting exemptions, and non-compliance with Notification No.34/97 conditions rendered the claim invalid. The Tribunal emphasized the legal precedence and the necessity of fulfilling prescribed conditions for availing exemptions, ultimately dismissing the appeals.