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of <h1>Customs Act: Appellant wins exemption appeal due to non-fulfillment of DEEC conditions.</h1> <h3>CENTURY EXTRUSIONS LTD. Versus COMMISSIONER OF CUSTOMS, CALCUTTA</h3> The Tribunal ruled in favor of the appellant, granting the benefit of exemption under the Customs Act. The decision was based on the non-fulfillment of ... Re-imported goods of Indian origin Issues:1. Applicability of exemption under Section 20 of the Customs Act, 1962 read with Notification No. 97/95-Cus.2. Interpretation of conditions under the Duty Exemption Entitlement Scheme (DEEC).3. Consideration of subsequent Notification No. 94/96-Cus for exemption on re-importation.Analysis:Issue 1: Applicability of exemption under Section 20 of the Customs Act, 1962 read with Notification No. 97/95-Cus.The appellant sought exemption under Notification No. 97/95-Cus for the clearance of a consignment of Aluminium alloy extruded products returned from Dubai after exportation. The lower authorities denied the benefit citing condition (b) of the second proviso of the notification, which excludes re-imported goods exported under the DEEC scheme. However, the appellant argued that the goods were not exported under the DEEC scheme as crucial conditions were not met, such as the goods being refused by the foreign buyer and lack of foreign exchange remittance as per DEEC norms. The Tribunal agreed with the appellant, emphasizing that the substance of the DEEC scheme was not fulfilled, allowing the appeal and granting the benefit of the exemption.Issue 2: Interpretation of conditions under the Duty Exemption Entitlement Scheme (DEEC).The advocate highlighted that the DEEC scheme required specific conditions to be met, including the goods being taken over by the foreign buyer for export completion and foreign exchange remittance as per value addition norms. The Tribunal noted that the DEEC scheme's vital ingredients were not fulfilled in this case, despite export under a DEEC Shipping Bill. By focusing on the scheme's substance over form, the Tribunal concluded that the import did not occur under the DEEC scheme, leading to the allowance of the appeal and the benefit of the exemption being granted.Issue 3: Consideration of subsequent Notification No. 94/96-Cus for exemption on re-importation.The advocate referenced Notification No. 94/96-Cus, which rectified the inapplicability of the exemption for re-imported goods exported under the DEEC scheme. The new notification provided a separate category for cases like the appellant's, allowing exemption under specific conditions. The Tribunal acknowledged the applicability of the new notification to the appellant's case, as all relevant conditions, including intimation to authorities, were fulfilled before the goods were cleared from Customs custody. Consequently, the Tribunal allowed the appeal based on the provisions of Notification No. 94/96-Cus.In conclusion, the Tribunal ruled in favor of the appellant, granting the benefit of exemption under the Customs Act based on the non-fulfillment of vital conditions under the DEEC scheme and the applicability of the subsequent notification for re-imported goods.
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