2001 (11) TMI 464 - AT - Customs

Summary

Issues:
1. Interpretation of Notification 34/97 regarding exemption from duty.
2. Compliance with conditions for exemption under Notification 34/97.
3. Applicability of special additional duty on imported goods.
4. Entitlement to exemption under Notification 34/98.

Analysis:
1. The case involved the interpretation of Notification 34/97, which exempts goods from basic and additional duty of customs subject to certain conditions. The central issue was whether the exemption under this notification extended to the special additional duty of customs.

2. The importer claimed exemption under Notification 34/97 for four consignments of chemicals imported under the Duty Entitlement Pass Book (DEPB) Scheme. The Asst. Commissioner and the Commissioner (Appeals) found that the special additional duty had not been paid, leading to a demand for payment. The key contention was whether the importer had complied with the conditions for claiming exemption under the notification.

3. The tribunal clarified that the exemption under Notification 34/97 was limited to basic and additional duties of customs and did not apply to the special additional duty. The importer was required to debit the amount of basic and additional duties payable in the passbook, but the special additional duty was not covered by this requirement. Therefore, the failure to debit the special additional duty did not amount to a contravention of the conditions of Notification 34/97.

4. Ultimately, the tribunal held that the importer was entitled to the exemption under clause 30 of Notification 34/98, which specified goods exempted from special additional duty. As a result, the appeal was allowed, and the impugned order demanding payment of the special additional duty was set aside.

This judgment provides clarity on the scope of exemptions under customs notifications and highlights the importance of understanding the specific duties to which exemptions apply. It underscores the need for precise compliance with the conditions laid out in notifications to avoid unnecessary demands for duty payment.