Prima facie exemption under Customs and Central Excise notifications differed for imported goods used in food or drug industries.

Imported goods said to be used in the food or drug industries were examined for eligibility under a Customs exemption notification and the corresponding Central Excise notification for customs duty and countervailing duty purposes. The Customs notification for cosmetic and toilet preparations was found, at least prima facie, inapplicable to the goods, so that claim was not accepted on that basis. The claim under the Central Excise notification, however, was treated as having a strong prima facie foundation for the additional duty component, indicating that the exemption question had to be assessed separately under the relevant excise entry.

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Issues: Whether the importers had made out a prima facie case for grant of benefit under the Customs exemption notification and the corresponding Central Excise notification for purposes of customs duty and countervailing duty.

Analysis: The imported goods were stated to be used in food or drug industries. The claimed Customs notification for cosmetic and toilet preparations was found, at least prima facie, inapplicable to the goods. However, the claim for benefit under the Central Excise notification was viewed as having a strong prima facie basis for the purposes of the additional duty component.

Conclusion: The claim under the Customs notification was not accepted on a prima facie basis, while the claim under the Central Excise notification was treated as prima facie sustainable.

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