Customs duty exemption for stadium flood lights upheld despite use beyond World Cup matches

CESTAT Chennai held that customs duty exemption for flood lights imported for stadium infrastructure was validly granted and not violated by use in cricket matches beyond World Cup. The adhoc exemption order did not restrict usage to World Cup matches only and made no distinction between commercial and non-commercial matches. The department's allegations were based on assumptions without factual basis. Additionally, the demand was time-barred as it was raised after seven years without evidence of suppression of facts by the appellant. The appeal was allowed and the impugned order set aside.

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Issues:
1. Confiscation of goods, imposition of redemption fine, penalty, and demand of customs duty for alleged violation of Adhoc Exemption Order.
2. Whether the demand is barred by limitation.

Analysis:

Issue 1:
The appellant, a cricket association, imported flood lighting equipment under an Adhoc Exemption Order. The Department alleged the appellant violated the condition of not using the goods for commercial purposes by conducting one day matches under flood lighting. The original authority ordered confiscation of goods, redemption fine, duty demand, and penalty. The appellant argued the purpose was to uplift the stadium to international standards, not limited to World Cup matches. The Tribunal found the Department's interpretation erroneous, as the exemption was not solely for World Cup matches. The appeal was allowed in favor of the appellant.

Issue 2:
The Department invoked the proviso to Section 28(1) of the Customs Act for the duty demand, claiming a continuing violation. The appellant contended the demand was time-barred, as there was no evidence of intentional suppression of facts to evade duty. The Tribunal found no basis for extended period invocation, as the SCN was issued after 7 years without alleging suppression. Thus, the demand was deemed time-barred, and the issue was resolved in favor of the appellant.

In conclusion, the Tribunal set aside the impugned order, allowing the appeal with any consequential relief.

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