2026 (3) TMI 1164 - AT - Customs

SAFTA exemption entitlement upheld and remitted for reassessment to determine admissibility and grant benefit if eligible.

Importer entitlement to claim SAFTA exemption after provisional clearance is recognised where eligibility conditions are met; a failure to claim at ... Entitlement to claim SAFTA exemption at a belated stage, including at the appellate stage or post provisional clearance - benefit under Notification No.99/2011-CUS dated 09.11.2011 (SAFTA exemption) - Claim of exemption notification can be made post-clearance or post-assessment - HELD THAT: - The hon’ble apex court in the case of Share Medical Care v. Union of India [2007 (2) TMI 2 - SUPREME COURT] had categorically held that even if the appellant had not claimed benefit under a particular Notification at initial stage, “he is not debarred, prohibited, stopped from claiming such benefit at a later stage.” It is therefore categoric that an exemption Notification benefit can be claimed and allowed subsequently if eligible. This Tribunal in the case of CIPLA Ltd. v. Commissioner of Customs, Chennai [2007 (8) TMI 131 - CESTAT, CHENNAI] has held that benefit of an exemption Notification not claimed at the time of import can however not be denied as it can be claimed at the appellate stage as well. There are a slew of case laws to this proposition of law - for instance Zenith Computers Ltd. v. Commissioner of Customs, Goa [2017 (3) TMI 758 - CESTAT MUMBAI]. The Tribunal held that benefit under an exemption Notification is capable of being claimed even after clearance or after self-assessment, provided the conditions of the Notification are met and the usual legal procedure is followed. There is no estoppel arising solely from an importer having carried out self-assessment without claiming the exemption. Authorities are obliged to grant appropriate legal benefits admissible in law even if not initially claimed by the importer. The Tribunal relied on settled precedent confirming that a belated claim for exemption cannot be denied on the ground that it was not made at the time of importation or initial assessment. [Paras 9, 11, 12] The Commissioner (Appeals)'s denial of the SAFTA exemption on the ground that it was not claimed at the time of clearance or cannot be availed at the appellate stage is not sustainable. Remand for fresh consideration of admissibility of exemption during finalization of provisional assessment - remedial course to be followed where imports were provisionally assessed and exemption claim requires consideration - HELD THAT: - The Tribunal observed that provisional assessments remain subject to finalization and that provisional clearance does not preclude re-assessment or consideration of an exemption claim at the time of finalization. Although the Commissioner (Appeals) noted that the appeal was premature because finalization was pending, the Tribunal found merit in the appellant's primary plea and directed that the matter be remanded to the original authority to examine the admissibility of the SAFTA Notification during finalization of the Bills of Entry. The remand requires the authority to consider the SAFTA Certificate and, if eligible, grant the benefit while finalizing the provisional assessments. [Paras 10, 13, 14] The appeals are remanded to the original authority with directions to examine the admissibility of Notification No.99/2011-CUS and, if found admissible, grant the benefit while finalizing the provisional assessments. Final Conclusion: The Tribunal held that an importer may claim an exemption Notification belatedly if eligible, and remanded the matters to the original authority to examine and, if admissible, grant the SAFTA benefit while finalizing the provisional assessments. Issues: Whether the importer is entitled to claim benefit under Notification No.99/2011-CUS dated 09.11.2011 (SAFTA exemption) at a belated stage post provisional clearance and whether the matter should be remanded to the original authority for examination and finalization.Analysis: The Tribunal examined settled legal principles concerning entitlement to exemption notifications where the claim was not made at the time of initial clearance. Jurisprudence establishes that an exemption under a notification, if otherwise admissible, may be claimed after importation and post-assessment subject to compliance with eligibility conditions; self-assessment without claiming the exemption does not create an estoppel against later claim. The imports in question were provisionally assessed and their finalization remained pending, permitting re-assessment and consideration of entitlement at finalization. Given these legal principles and the presence of SAFTA country-of-origin certificates on record, the appropriate remedy is to require the original authority to examine the admissibility of Notification No.99/2011-CUS dated 09.11.2011 and, if conditions are met, grant the exemption while finalizing the Bills of Entry.Conclusion: The appellant's entitlement to claim SAFTA exemption is upheld and the matter is remanded to the original authority to examine and determine admissibility of Notification No.99/2011-CUS dated 09.11.2011 and to grant the benefit if eligible; decision is in favour of the assessee.