TaxTMI 
TaxTMI 
2026 (3) TMI 1549
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....ion of five Bills of Entry [B/E] and grant of exemption under Notification No.21/2022 - CUS dated April 13, 2022 was rejected. 2. Briefly stated, the appellant filed five self-assessed B/E Nos.8143986 dated 5.04.2022, No.8188854 dated 8.04.2022, No.8208393 dated 9.04.2022, No.8255705 dated 13.04.2022 and No.8259138 dated 13.04.2022 for clearance of imported goods namely, "Raw Cotton", classified under Chapter Heading No.5201 0020 claiming exemption from payment of basic customs duty vide exemption Notification No.18/2015 dated April 1, 2015, against valid advance authorisation licenses. On the same day, i.e., April 13, 2022, the last of the impugned B/Es were filed and assessed a new exemption Notification No.21/2022-CUS was issued, exem....
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....4.2022, i.e. after the notification came into effect on 14.04.2022, the notification no.21/2022, which provided 'nil' rate of duty was applicable. The learned Counsel emphasised that the taxable event is when goods cross the Customs barrier and, therefore the relevant date is the date of clearance relying on the decision of the Apex Court in Garden Silk Mills versus Union of India [1999 (113) ELT 358 (SC)] and Kiran Spinning Mills versus CCE [1999(113) ELT 753 (SC)] Since the goods in question were pending clearance when the exemption notification came into effect, the benefit thereof cannot be denied. The learned Counsel relied on the settled principle that the assessee has the option to choose more beneficial exemption. 6. The learned ....
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....1/2022 was not in existence at that time, no benefit can be availed by the appellant thereunder. 8. To consider the other submission of the learned Counsel in terms of Section 46(5) of the Act for substitution of B/Es from home consumption to warehousing, the provisions of Section 46(5) are quoted below:- "Section 46(5) If the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for a bill of entry for warehousing or vice versa." 9. Clause (5) of Section 46 starts with the satisfaction of the proper officer with respect to the interest of revenue not being prejudicially affected wh....
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....The option is exercisable only with reference to the notifications, which are in existence on that date. The reliance placed by the appellant on the decision of the Apex Court in Bharat Surfactant (P) Ltd versus Union of India [1989(43)ELT 189(SC )] and the decision of the Tribunal in the case of Sha Poosaji Mangilal versus Collector of Customs, Madras [1991(51)ELT 76(Tri.)] holding that the rate of duty prevailing on the date of presentation of B/E is applicable, but if entry inwards of ship takes place after presentation of B/E, then the rate of duty prevailing on date of entry inwards of ship is applicable. The said decisions are distinguishable for the reason that all the B/Es were filed as per the statutory time limit and were not file....
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....r the arrival, as the case may be, would not apply in the facts of the present case, which are otherwise. 13. Having considered the submissions and the provisions of law, we are of the considered view that the appellant is not entitled to avail the benefit of the Notification No.21/2022, as the same was non-existent on the date of filing of the B/Es. There is no reason to interfere with the impugned order and the same is hereby affirmed. The appeal is, accordingly dismissed. [Order pronounced on 27th March 2026] ============= Document 1 REVISED COPY Port Code BE No BE Date BE Type INMDD6 8143985 05/04/2022 1288034113/47 FIRST COPY GSTINITYPE 23AABCM4692E2ZM/G CB CODE AACCI2514PCH001 TYPE ITEM CONT 462546....