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Issues:
Claim for refund of security deposit under Notification No. 51/98-Cus. for import of waste paper. Analysis: The appellants, engaged in paper manufacturing, imported waste paper under Notification No. 51/98-Cus. exempting waste paper from special customs duty subject to certain conditions. They imported goods without a registration certificate and made a security deposit equivalent to 5% of the special customs duty. The authorities rejected their refund claim as they did not follow the prescribed procedure under Customs Rules. The Commissioner (Appeals) upheld the rejection, stating that the appellants failed to comply with the registration and application process as mandated by the Customs Rules. The authorities emphasized that the procedure, including registration with the Assistant Commissioner of Central Excise and certification of the application, was not adhered to during clearance of the goods. In response, the appellants argued that they followed the procedure by applying for registration immediately upon receiving the notification. They maintained that they submitted necessary details, executed a bond, and obtained an end-use certificate, despite delays in receiving the registration certificate. They contended that the security deposit should be refunded upon issuance of the registration certificate. The Tribunal noted that the authorities did not consider the appellants' detailed compliance with the procedural requirements. Given that the registration certificate was eventually issued by the Assistant Commissioner, the Tribunal held that the appellants were entitled to the benefit of the notification. Consequently, the security deposit made at the time of clearance, as a precaution against non-issuance of the certificate, was deemed refundable. Therefore, the Tribunal set aside the previous order, allowing the appeal and granting consequential relief to the appellants by ordering the refund of the security deposit amounting to Rs. 1,51,705.00.
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