9911796707
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Issues:
Jurisdiction of the Commissioner of Customs to raise the demand, eligibility for waiver of pre-deposit of duty, interpretation of Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996, determination of whether imported inputs were used for the manufacture of specified final products. Jurisdiction of the Commissioner of Customs: The appellant raised a preliminary objection regarding the jurisdiction of the Commissioner of Customs to raise the demand in the show cause notice and confirm it in the adjudication order. The appellant argued that according to Rule 8 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996, only the Assistant Commissioner or Deputy Commissioner of Central Excise can raise a differential duty demand. The appellant contended that in this case, the notice was issued by the Commissioner of Customs, who also adjudicated the matter. The appellant further argued on the merits of the case, claiming that certain materials were waste and scrap arising during the manufacture of copper clad laminates, satisfying the requirements of Notification No. 13/97 for concessional duty. Eligibility for Waiver of Pre-deposit of Duty: The appellant sought a waiver of the pre-deposit of duty amounting to Rs. 20,20,103, which was confirmed due to the denial of the benefit of concessional duty under Notification No. 13/97. The appellant argued that the imported inputs were indeed used for the manufacture of copper clad laminates, meeting the conditions for concessional duty. The respondent opposed the waiver, asserting that the materials in question were not waste or scrap but separate excisable goods, leading to the duty demand being rightfully raised and confirmed. Interpretation of Customs Rules and Use of Imported Inputs: The Tribunal carefully considered the arguments presented by both parties. In light of the language of Rule 8 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996, the Tribunal found a prima facie issue regarding the jurisdiction of the Commissioner of Customs in raising the demand. Consequently, the Tribunal decided to waive the pre-deposit of duty and penalty, staying the recovery pending the appeal process. The determination of whether the imported inputs were genuinely used for the manufacture of specified final products, as required by the concessional duty rules, remained a crucial aspect of the case. This judgment delves into the complex interplay between jurisdictional issues, eligibility for waiver of pre-deposit of duty, the interpretation of customs rules, and the crucial question of whether the imported inputs were genuinely utilized in the manufacture of specified final products. The Tribunal's decision to waive the pre-deposit of duty and penalty pending the appeal reflects a nuanced understanding of the legal and factual complexities involved in the case.
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