Tribunal upholds exemption for DG Sets to EPCG License holders under Notification No. 53/97-Cus

The Tribunal upheld the Commissioner's decision, finding that the appellant was entitled to the benefit of exemption Notification No. 53/97-Cus for clearing the DG Sets to EPCG License holders at a concessional rate of duty. The Tribunal emphasized the compliance with conditions and lack of contrary evidence from the Revenue, ultimately dismissing the Revenue's appeal and affirming the Commissioner's decision.

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Issues:
Whether the appellant is entitled to the benefit of exemption Notification No. 53/97-Cus dated 3.6.1997 for clearing two DG Sets in DTA to EPCG License holders at a concessional rate of duty.

Analysis:
The case involves an appeal by the Revenue against an order passed by the Commissioner of Central Excise (Appeals), Mumbai-I. The respondents, engaged in manufacturing, imported two DG Sets and later sought permission to dispose of them in DTA to an EPCG License holder. The Revenue contended that the necessary permission was not obtained, leading to a demand for duty payment. The Commissioner (Appeals) allowed the appeal, prompting the Revenue's appeal.

The key issue was whether the respondents were rightfully denied the benefit of the exemption Notification No. 53/97-Cus dated 3.6.1997 for clearing the DG Sets in DTA to EPCG License holders at a concessional rate of duty. The adjudicating authority denied the benefit citing lack of permission from the Development Commissioner. However, the Commissioner (Appeals) analyzed circulars and permissions granted, concluding that the appellants complied with conditions and were eligible for the concessional rate of duty.

The Tribunal upheld the Commissioner's decision, noting that the Revenue failed to provide contrary evidence. Referring to a similar case, the Tribunal emphasized that clearances by 100% EOUs to EPCG units should be treated as imports for duty calculation purposes. The Tribunal highlighted that circulars clarified the applicability of concessional duty rates to clearances by EOUs, and the principles were approved by the Supreme Court.

In conclusion, the Tribunal found no merit in the Revenue's appeal, upholding the Commissioner's decision and dismissing the Revenue's appeal. The judgment was pronounced on 11.09.2020.

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