2011 (8) TMI 912

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....ged in the manufacture of cotton yarn and knitted fabrics. They had imported Murata Autoconer Winding Machine falling under chapter 84 of the Customs Tariff Act, availing full exemption under notification No.53/97-Cus dated 03/06/97. After using the machine for quite some time, the appellants cleared the said machine in DTA on payment of duty of Rs.1,31,447.50 @ 10% on depreciated value of the machine. A show-cause notice was issued to the appellant vide notice dated 30/10/98 alleging that the appellant was liable to discharge Customs duty liability of Basic Customs Duty (BCD) @ 10%, Special Customs Duty (SCD) @ 5% and Additional duty @ 13%, totalling to an amount of Rs.3,93,686/- in terms of the provisions of the said notification No.53/97....

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....that notification No.53/97 under which the appellant has claimed the benefit at the time of importation grants exemption not only in respect of the duty of Customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 but also in respect of the additional duty, if any, leviable thereon under Section 3 of the said Customs Tariff Act, subject to the conditions specified therein.  Condition No.5 of the said notification provides that, "Where it is shown to the satisfaction of the Assistant Commissioner of Customs that the said unit has been allowed by the Development Commissioner or the said Board to clear any of the said goods for being taken to any other place in India in accordance with the Export and Import Policy ....

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....hen conditions are stipulated in the notification, for availing the exemption,  the said condition should apply not only in respect of the exemption from BCD but also in respect of the additional duty of Customs  levied under Section 3 of the Customs Tariff Act and all other duties, which are exempt as a consequence. Therefore, the appellant cannot take the plea that the conditions stipulated therein will  apply in respect of basic duty of customs. Since the appellant availed the exemption in respect of not only the Basic duty of Customs, but also in respect of additional duty of Customs and  Special duty of Customs at the time of importation, when the goods are subsequently cleared from 100% EOU to DTA after obtaining t....