Nil countervailing duty on imported fabrics upheld where exemption conditions could not be imposed on the importer.

Imported polyester woven fabrics qualified for nil countervailing duty under Notification No. 30/2004-C.E. because conditions that an importer could not practically fulfil could not be used to deny the exemption. CESTAT followed earlier identical decisions and treated the exemption issue as settled on the same facts. It further held that Notification Nos. 34/2015-C.E. and 37/2015-C.E. did not change the legal position or affect the importer's entitlement to the exemption. The result was that nil CVD was available and the Revenue's challenge failed.

---

---

Issues: Entitlement of the importer to nil countervailing duty under Notification No. 30/2004-C.E. dated 09.07.2004 on imported polyester woven fabrics, and whether the subsequent notifications affected that exemption.

Analysis: The imported goods were assessed to additional duty of customs on the footing that the conditions of the exemption notification were not fulfilled. The Tribunal held that the issue was already covered by earlier decisions, including the Tribunal's own decision on identical facts, and followed the settled position that conditions which cannot be complied with by the importer cannot be thrust upon imported goods for denying the exemption. It further held that the amendments introduced by Notification No. 34/2015-C.E. dated 17.07.2015 and Notification No. 37/2015-C.E. dated 21.07.2015 did not alter the legal position.

Conclusion: The importer was entitled to the benefit of nil CVD and the Revenue's challenge failed.

---