2005 (8) TMI 447 - AT - Central Excise

Summary

Issues:
Whether Gambier imported on 26-3-2000 is entitled to the benefit of Notification No. 76/86-Cus.

Detailed Analysis:

The case involved a dispute regarding the entitlement of Gambier imported on 26-3-2000 to the benefit of Notification No. 76/86-Cus. The benefit of the notification was denied on the grounds that it provides exemption to Kattha only, not Gambier. The applicants argued that a circular issued by the Department of Revenue clarified that Gambier was excluded from the scope of the notification by an amending notification dated 1-3-2003, which was prospective in nature. They contended that since the import was made before the amendment, they were entitled to the notification's benefit.

The revenue's contention was that Gambier and Kattha are distinct products, and the notification specifically pertains to Kattha, not Gambier. The crux of the issue was whether Gambier imported before the amendment date of 1-3-2003 could avail the benefit of Notification No. 76/86-Cus. The Tribunal considered the circular and the amending notification, which excluded Gambier from the notification's scope effective from 1-3-2003. Since the import in question was made prior to the amendment, the appellants were deemed entitled to the notification's benefit.

As no other significant issues were raised in the appeal, the Tribunal proceeded with the hearing after waiving the requirement for predeposit of duty. The Tribunal relied on the Board's Circular and the prospective nature of the amendment to rule in favor of the appellants. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellants, granting them the benefit of Notification No. 76/86-Cus. The judgment was dictated and pronounced in open court by the Tribunal.