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Interpretation of Notification No. 32/2005-Cus. regarding duty debit under Target Plus Scheme. Detailed Analysis: Issue 1: Interpretation of Notification No. 32/2005-Cus. The case involved the interpretation of Notification No. 32/2005-Cus. related to the duty debit under the Target Plus Scheme. The respondents had filed bills of entry for two machines under the EPCG Scheme, claiming duty credit certificates under the Target Plus Scheme. The original authority rejected the claim, citing potential double benefit. The appeals were allowed by the Commissioner (Appeals), leading to the department's present appeals. Issue 2: Duty Debit under Target Plus Scheme The main issue was whether duties under the Target Plus Scheme should be debited at normal tariff rates or effective rates. The EPCG Notification (No. 97/2004-Cus.) specified an effective rate of 5%. The respondents argued for debiting duties at this rate, while the department contended for the tariff rate. The Commissioner (Appeals) ruled in favor of debiting duties at the effective rate, aligning with the provisions of Notification No. 32/2005-Cus. and Para 3.7 of the Exim Policy. Issue 3: Duty Leviable and Effective Rate The judgment clarified that the duty leviable is what is assessed and collected from the assessee. The department can collect only the duty for which an effective rate is fixed by the Central Government, not a higher tariff rate. In this case, the duty to be debited under the Target Plus Scheme is the duty equivalent to what is recoverable at the effective rate (5% in this instance). The judgment emphasized that this interpretation does not grant a double benefit to the assessee and that the department had misconstrued the Target Plus Scheme. In conclusion, the impugned order was sustained, and the appeals were dismissed, affirming the interpretation of debiting duties under the Target Plus Scheme at the effective rate specified in the EPCG Notification.
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