2006 (7) TMI 402 - AT - Customs

Summary

Issues:
1. Dispute over entitlement to claim benefit of Excise notification in respect of CVD while claiming Customs notification for BCD.
2. Whether the imported goods qualified as a non-conventional energy device/system under Excise notification.
3. Interpretation of Section 3(1) of the Customs Tariff Act regarding the choice of exemption notification by the importer.

Analysis:

1. The case involved a dispute between the importer and the department regarding the entitlement to claim the benefit of the Excise notification for CVD while already claiming the benefit of the Customs notification for BCD. The original authority granted the benefit of both notifications, but the first appellate authority allowed the benefit of the Excise notification for CVD only. The appellate authority relied on the specific description of goods in the Excise notification compared to the generic description in the Customs notification.

2. The department argued that the imported goods did not qualify as a non-conventional energy device/system under the Excise notification. They contended that the benefit of the Excise notification could not be claimed as the imported item did not constitute a non-conventional energy device or system. The department emphasized that the imported item was not proven to be covered by the Excise notification.

3. The respondents argued that they had the right to choose the exemption notification for claiming benefits and that the provisions of Section 3(1) of the Customs Tariff Act supported their claim under the Excise notification. They relied on previous court judgments to establish their entitlement to the benefit of the Excise notification. However, the tribunal found that the imported goods did not meet the criteria specified in the Excise notification for a non-conventional energy device/system, and therefore, the benefit could not be claimed.

In conclusion, the tribunal set aside the decision of the appellate authority and allowed the appeal, stating that the importer had correctly paid duty as per the Customs notification and was not entitled to the benefit of the Excise notification.