2004 (6) TMI 544 - AT - Central Excise

Summary

Issues:
- Interpretation of Notification No. 276/92-Customs exemption conditions
- Entitlement to refund of duty paid on imported goods

Interpretation of Notification No. 276/92-Customs exemption conditions:
The appellant imported Magnetic Type Liquid Level Gauges under Chapter 90 of the Customs Tariff Act in 1995 and paid duty. Subsequently, it was realized that the goods were exempt from duty under Notification No. 276/92-Customs for renovation or modernization of a fertilizer plant. The Department contended that the appellant did not meet the exemption conditions, leading to the rejection of the refund claim for Rs. 1,40,209. The key conditions for exemption were: (a) certification by a Deputy Secretary in the Department of Fertilizer for renovation project clearance, and (b) recommendation for exemption of goods for the purpose. The appellant approached the Ministry of Chemicals and Fertilizers for techno-economic clearance for their project in Gujarat, which was granted, and the list of required goods was certified by a Deputy Financial Adviser, equivalent to a Deputy Secretary. The documents confirmed that the first condition was met, satisfying the exemption requirements under the notification.

Entitlement to refund of duty paid on imported goods:
Having fulfilled all conditions of Notification No. 276/92-Customs, the appellants were deemed entitled to duty-free clearance of the goods. As they had paid duty at the time of clearance without availing the exemption, they were granted the refund. The order of the Commissioner was set aside, providing consequential relief as per the law. The Tribunal's decision favored the appellant, acknowledging their compliance with the exemption criteria and directing the refund of the duty paid during clearance.