2022 (6) TMI 1263 - AT - Customs

Tribunal grants exemption for imported goods under Notification No.25/2002-Cus, emphasizing eligibility criteria.

The tribunal allowed the appeal, granting the appellant exemption under Notification No.25/2002-Cus for imported goods used in manufacturing final ... Exemption form Customs duty for goods imported for use in the manufacture of finished goods in the nature of PCB assemblies - benefit of N/N. 25/2002-Cus as amended by N/N. 8/2004-Cus dated 08.01.2004 - case of the department is that the exemption notification under the Sl. No. 11,29 & 57 of the table of the notification is applicable to only IT Industries whereas, the appellant’s factory is manufacturer of induction melting and heating furnace as well as induction welding equipment, and therefore the benefit of exemption was denied - The appellant also submits that since the demand in the present case is in pursuance of the earlier order which has already been set aside by this tribunal hence, the appeal be allowed. HELD THAT:- There is no dispute that the subject imported material are clearly specified in the table given in the notification, the notification does not prescribe a condition that the imported goods are eligible for exemption only for IT Industries therefore, so long the goods are specified in the notification against the given Sr.Nos. as mentioned above the exemption cannot be denied. The issue has been already decided by the Tribunal in INDUCTOTHERM INDIA PVT LTD VERSUS C.C. -AHMEDABAD [2021 (10) TMI 1341 - CESTAT AHMEDABAD] where it was held that the exemption was denied merely on the basis that heading of the notification given by the publisher is of “Exemption to the goods of IT/Electronic industry” and also on the basis of budget speech. We find that the heading is not a part of the notification however, the goods imported by the appellant is squarely covered under the table given in the notification and also the finished goods wherein the same is also clearly given in the table accordingly, the appellant is entitled for exemption. It can be seen that this proceeding is consequent to the earlier proceeding carried out by Order-In-Original dated 08.04.2019 and OIA dated 09.12.2019. The above cited judgment of this tribunal was passed against the OIA dated 09.12.2019 therefore, this case being only for the subsequent period on the same issue, following the aforesaid previous order, the impugned order will not sustain. Appeal allowed - decided in favor of appellant. Issues:1. Applicability of Notification No.25/2002-Cus for exemption from customs duty.2. Interpretation of the exemption notification for specific industries.3. Consideration of previous tribunal judgment for similar issue.4. Relevance of budget speech and heading in the notification for exemption eligibility.Analysis:Issue 1: Applicability of Notification No.25/2002-CusThe appellant, engaged in manufacturing sophisticated machinery, imported equipment and machinery under six bills of entry. The goods were imported for the manufacture of PCB assemblies, which were used in the appellant's factory for producing final products like induction melting and heating furnace. The appellant claimed exemption under Notification No.25/2002-Cus for these imported goods.Issue 2: Interpretation of the exemption notificationThe department contended that the exemption under the notification was applicable only to IT Industries, not to the appellant's manufacturing unit. The appellant argued that the goods imported were specified in the notification and not restricted to IT Industries. The tribunal noted that the notification did not impose any condition that the exemption was solely for IT Industries. Relying on previous tribunal judgments, the appellant's eligibility for exemption was upheld.Issue 3: Consideration of previous tribunal judgmentThe appellant referred to a previous tribunal order in their favor on a similar issue, where they were found eligible for the exemption. Since the demand in the present case was based on an earlier order that had been set aside, the tribunal allowed the appeal, considering consistency with the previous judgment.Issue 4: Relevance of budget speech and heading in the notificationThe department based its denial of exemption on the heading in the notification related to IT/Electronic industry goods and a budget speech. However, the tribunal emphasized that the heading was not part of the notification. The goods imported by the appellant were clearly covered under the notification's table, making them eligible for exemption irrespective of the heading or budget speech.In conclusion, the tribunal set aside the impugned order, allowing the appeal and granting the appellant the exemption under Notification No.25/2002-Cus. The decision was based on the clear inclusion of the imported goods in the notification's table, regardless of industry type, and the absence of any restrictive conditions related to IT Industries in the notification.