2019 (5) TMI 926

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....vide File No S/7-CRA-12/2010 VA/ACC dated 01.09.2010 is correct. Accordingly, I confirm the duty of Rs. 67,75,374/- (Rupees Sixty Seven Lakhs Seventy Five Thousand Three Hundred and Seventy Four) for imports made under the 25 Bill of Entries as mentioned in the annexure to the above SCN under Section 28 of the Customs Act, 1962, along with interest at appropriate rates in terms of section 26AB of the Customs Act, 1962. The amount should be paid by the importer within thirty days of receipt of this order." 2.1 Appellants imported microprocessors (CETH 84733010) worth Rs. 16,93,84,343/- under 25 (twenty five) Bill of Entries through Air Cargo Complex, Mumbai. They claimed exemption from payment of CVD in terms of Notification No 06/2006-CE ....

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..... 2.6 The show cause notice was adjudicated by the Commissioner as per the impugned order referred in para 1, supra. Aggrieved by the order of Commissioner, Appellants have filed this appeal. 3.1 In their appeal appellants have challenged the order of Commissioner stating that: i. They are entitled to benefit under notification No 29/2010-Cus as the imported goods fulfill all the conditions of that exemption notification. These goods are in pre-packaged form and are intended for retail sale. It is not the case of revenue that retail sale price has not been declared on these package. ii. They exemption claimed by them under notification No 06/2006-CE, in respect of CVD will not change the status of goods from pre-packaged commodity....

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....9/2010-Cus will show that both Notifications are mutually exclusive. While Notification of Central Excise is applicable in respect of the goods (microprocessors) meant for fitment inside the computer/ laptop, Notification No 29/2010-Cus, is meant for pre-package commodity meant for retail sale and having retail sale price declared on it. Since appellants have claimed exemption from CVD in terms of the said Central Excise Notification, they will automatically be outside the scope of Custom Notification, because availment meant of benefit under Central Excise exemption notification implies that goods are meant for fitment inside Computer/ Laptops and hence cannot be meant for retail sale. Since appellants have by claiming the benefit under Ce....

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..../ Laptop body only. Nil - ii. Meant for use other than at (i) above. 4% - 5.3 From the reading of the Notification it is quite evident that complete exemption from payment of Central Excise duty (CVD) is admissible only in respect of the those microprocessors which are meant for fitment inside CPU Housing/ Laptop Body only. In all other case the Central Excise Duty (CVD) is leviable @ 4%. Admittedly in the present case appellants have claimed complete exemption from payment of Central Excise Duty (CVD) and hence the microprocessor imported by them are meant for fitment inside the CPU Housing/Laptop Body and not for retail sale. 5.4 Exemption Notification No 29/2010-Cus dated 27.02.2010 exempts from payment of Special Additional ....

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....ication should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue. (3) The ratio in Sun Export case (supra) is not correct and all the decisions which took similar view as in Sun Export case (supra) stands overruled." 5.7 In terms of the principles laid down by the Hon'ble Apex Court for interpreting the exemption notification we find that benefit of exemption from payment of Specia....