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Issues involved: Determination of applicable rate of duty for imported goods u/s Section 15 of the Customs Act, 1962, and the validity of claiming concessional rate of duty under Notification No. 28/97.
The appellants imported Carding Machines and Filtration Equipments and filed bill of entry No. 313144 on 27-3-1997, assessed on 3-4-1997 with a duty of Rs. 74,42,465. They later applied for an EPCG licence on 4-6-1997 to clear the goods at a concessional rate of 10% under Notification No. 28/97. However, their claim was rejected as the duty rate was 15% on the dates of filing and entry inwards, before the notification's effective date of 1-4-1997. The goods were cleared at 15% duty, upheld by the Commissioner (Appeals). The appellants did not appear despite notice. The learned D.R. reiterated that the duty rate is determined as per Section 15 of the Customs Act based on the dates of filing the bill of entry and entry inwards, both predating the notification, thus denying the benefit of the concessional rate. The appellants argued that their EPCG licence endorsed for 10% clearance, coupled with Ministry of Commerce's Notification No. 3/97, extending the concessional rate to pre-31-3-1997 licences under 15% duty, supports their claim. They contended that specific exemptions granted by the licence and Ministry override Section 15, urging to set aside the lower authorities' decision. The Tribunal noted that duty rate determination dates were before the notification's issuance, emphasizing that Ministry of Commerce lacks authority to exempt duty, only empowered for licensing. The absence of a Department of Revenue exemption for past imports negates the appellants' claim. Notification 3/97 applies to pre-31-3-1997 licences with post-31-3-1997 imports, not applicable in this case. Consequently, the appeal was dismissed for lack of merit.
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