Customs exemption claim remitted for fresh adjudication after the wrong notification was applied below.

The claim for customs exemption was examined on the wrong footing, because the lower authority proceeded as if Notification No. 80/70-Customs governed the request, although that was not the true basis of the refund claim. The appellant maintained that Notification No. 281/76-Customs, as amended, was the relevant concession and had not been applied to the facts. As the dispute had been dealt with under an inapplicable notification, the matter required reconsideration by the original adjudicating authority. The matter was remitted to the Assistant Collector for fresh adjudication on the claim under Notification No. 281/76-Customs as amended.

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Issues: Whether the matter was liable to be remitted for fresh adjudication on the claim for benefit under the proper customs notification instead of being dealt with under an inapplicable notification.

Analysis: The claim had been examined below on the assumption that exemption was sought under Notification No. 80/70-Customs, although that notification did not answer the real basis of the refund claim. The appellant sought to rely on Notification No. 281/76-Customs as amended, contending that the correct concession had not been considered. Since the dispute had been disposed of on a mistaken premise and the proper notification had not been applied to the facts, the matter required reconsideration by the original adjudicating authority.

Conclusion: The matter was remitted to the Assistant Collector for fresh adjudication on the claim under Notification No. 281/76-Customs as amended.

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