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Issues:
Interpretation of Notification nos. 34/97-Cus. and 34/98-Cus. regarding exemption from Special Additional Duty (SAD) for goods imported under the DEPB Scheme. Detailed Analysis: The issue in these appeals revolves around the interpretation of Notification nos. 34/97-Cus. and 34/98-Cus. concerning the exemption of goods from Special Additional Duty (SAD) under the DEPB Scheme. The appellants imported goods under the DEPB Scheme and claimed exemption from SAD as per Notification No. 34/98-Cus. dated 13-6-1998. The dispute arose when the Department insisted on debiting SAD in the Duty Entitlement Pass Book (DEPB), while the appellants argued for re-credit of the duty, citing their exemption under Notification No. 34/98. The lower authorities denied the re-credit, stating that goods imported under DEPB Scheme before 1-8-1998 were not eligible for SAD exemption as per Notifications 34/98 and 48/98. The appellants appealed to the Commissioner (Appeals) and subsequently to the Tribunal seeking relief from the impugned orders. The learned Advocate for the appellants contended that the lower authorities incorrectly applied the conditions of Notification 34/97 to 34/98, contrary to established Tribunal decisions. They cited precedents emphasizing that SAD exemption was available under Notification 34/98 both before and after its amendment by Notification 48/98. The advocate argued that the retrospective nature of Notification 48/98, as clarified by Supreme Court decisions, supported the appellants' position. Upon careful examination, the Tribunal analyzed the provisions of Notification nos. 34/97-Cus. and 34/98-Cus. The DEPB Scheme allowed importers to avoid paying Basic Customs Duty and Additional Duty under the Customs Tariff Act by utilizing the DEPB credit. Notification 34/97 specified that the debit in the DEPB was solely for Basic Customs Duty and Additional Duty, not for any other duty. The Tribunal noted that Notification 34/98 exempted goods from SAD and identified specific goods exempted in a table, including those imported under Notification 34/97-Cus. The subsequent Notifications, particularly 48/98-Cus. and 56/98, clarified the exemption from SAD for goods imported under the DEPB Scheme. The Tribunal disagreed with the Revenue's interpretation that goods imported under DEPB Scheme were exempt from SAD only from 1-8-1998 onwards. Instead, the Tribunal held that Notification 34/98 itself exempted such goods from SAD, and the conditions of Notification 34/97 should not be applied to Notification 34/98. Relying on the cited decisions and the clear language of the Notifications, the Tribunal found no merit in the impugned orders and allowed the appeals with consequential relief, if any. In conclusion, the Tribunal's detailed analysis clarified the proper interpretation of the Notifications, emphasizing the exemption of goods from SAD under the DEPB Scheme and rejecting the Revenue's restrictive approach. The decision provided relief to the appellants based on the legal principles and precedents cited during the proceedings.
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