2003 (10) TMI 446 - AT - Customs

Summary

Issues:
Interpretation of Notification No. 97/95 regarding DEEC exports and exemption for re-imported goods.
Validity of extending benefits under Notification No. 97/95 after delogging DEEC book with no objection from DGFT.
Relevance of subsequent Notification No. 94/96 in the interpretation of earlier notifications.

Analysis:
The appeal before the Appellate Tribunal CESTAT, CHENNAI involved a dispute regarding the interpretation of Notification No. 97/95 concerning DEEC exports and exemption for re-imported goods. The Revenue challenged the Order-in-Appeal which allowed benefits under the said notification based on the delogging of the DEEC book after obtaining a no objection from DGFT, leading to exports being categorized as non-DEEC exports. The Revenue contended that Notification No. 97/95 specifically prohibits exemption for re-imported goods previously exported under DEEC, thus questioning the applicability of the benefits in this case.

During the hearing, the respondent's representative argued that the delogging of the DEEC book post obtaining a no objection from DGFT justified the extension of benefits under Notification No. 97/95 as decided by the ld. Commissioner (Appeals). The respondent emphasized that the subsequent Notification No. 94/96 should not impact the interpretation of the earlier notification, especially since it was not in effect during the relevant period. Additionally, it was highlighted that the department did not appeal against the initial decision of the Commissioner (Appeals), indicating acceptance of the interpretation at that time.

Upon deliberation, the Appellate Tribunal upheld the decision of the ld. Commissioner, ruling that benefits under Notification No. 97/95 were applicable due to the delogging of the DEEC book with DGFT's approval, resulting in the exports being considered as non-DEEC exports. The Tribunal concurred with the thorough analysis conducted by the ld. Commissioner and concluded that the benefits should be extended to the respondent. Consequently, the appeal filed by the Revenue was dismissed, affirming the validity of the impugned order and maintaining the benefits granted under Notification No. 97/95.