2019 (5) TMI 1519 - HC - Customs

Court orders review of customs duty exemption decision, emphasizes Norms Committee's role

Vedanta Limited (Formerly known as Sesa Sterlite Ltd), Versus Union of India, Director General of Foreign Trade, Norms Committee, Regional Authority And Assistant Commissioner of Customs

The Court directed the fifth respondent to reconsider the show cause notice in light of the Norms Committee's ratification exempting certain goods from ... Advance License Scheme - ratification of norms in respect of Advance license for Annual Requirement - HELD THAT:- In view of the ratification by the Norms Committee that copper in unrefined copper blister and copper in copper anode also falls within one of the listed goods in the advance license issued by the petitioner, it is evidently clear that no customs duty is payable by the petitioner for the aforesaid goods and therefore the respondent No.5 cannot levy customs duty for the said goods on the petitioner. Recording the submissions of the learned Counsel for the respondents 1 to 4 that the Norms Committee has ratified that copper in unrefined copper blister and copper in copper anode which was imported by the petitioner is exempted from the payment of customs, the show cause notice issued by the fifth respondent may have to necessarily go. Petition disposed off. Issues:1. Mandamus to direct the third respondent to decide upon the petitioner's application for ratification of norms in respect of Advance license.2. Liability to pay customs duty for goods covered by an advance license.3. Show cause notice issued by the fifth respondent regarding customs duty payment.4. Ratification by the Norms Committee exempting certain goods from customs duty.5. Final decision by the fifth respondent in light of Norms Committee's ratification.Analysis:1. The petitioner filed a Writ Petition seeking a Mandamus to direct the third respondent to decide on the application for ratification of norms related to an Advance license. The application dated 17.04.2015 pertained to an Annual Requirement No.3510044672 dated 17.02.2015.2. The petitioner argued that they were not obligated to pay customs duty for goods covered by an advance license, despite a show cause notice issued by the fifth respondent on 14.06.2018. The petitioner approached the Norms Committee due to objections raised by the fifth respondent.3. The respondents presented the minutes of the Norms Committee-II meeting dated 10.04.2019, confirming the ratification of certain goods, including Copper in unrefined copper blister and Copper in Copper anode. This ratification implied that the imported goods mentioned were exempt from customs duty under the advance license held by the petitioner.4. Considering the Norms Committee's ratification that the goods in question were covered by the advance license, it was established that no customs duty was payable by the petitioner. The fifth respondent's show cause notice was challenged as it claimed there was no advance license for the specific goods, whereas the Norms Committee had ratified otherwise.5. The Court directed that the show cause notice issued by the fifth respondent be reconsidered in light of the Norms Committee's ratification. The fifth respondent was instructed to make a final decision within four weeks from the date of the order. The Writ Petition was disposed of with no order as to costs, emphasizing the importance of the Norms Committee's decision in determining customs duty liability.