Duty exemption as of right rejected prima facie; court examined rescission of excise relief and customs exemption scope.

A duty exemption cannot be claimed as of right, the Delhi HC observed prima facie while examining a challenge to the rescission and scope of exemption notifications. It noted that imports by non-commercial research institutions remained fully exempt from customs duty and integrated tax under Notification No. 27/2017-Customs, dated 30 June 2017, but the exemption from excise duty on local purchases had been rescinded under Notification No. 9/2017-Central Excise, dated 30 June 2017. The Court considered that the basis for the rescission required clarification from the Government and issued notice to the respondents.

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Issues: Whether the petitioner was entitled to claim continuation of duty exemption as of right and whether notice should be issued on the petition challenging the rescission and scope of the exemption notifications.

Analysis: The Court observed, prima facie, that exemption cannot be claimed as a matter of right. It also noted that imports by non-commercial research institutions were fully exempt from customs duty and integrated tax under Notification No. 27/2017-Customs dated 30th June, 2017, while the exemption from excise duty on local purchases had been rescinded under Notification No. 9/2017-Central Excise dated 30th June, 2017. The Court considered that the basis of such rescission required elucidation by the Government.

Conclusion: Notice was issued to the respondents, with time granted for filing of counter affidavit and rejoinder.

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