2007 (4) TMI 411 - AT - Customs

Summary

Issues:
1. Benefit of Notification No. 81/95-Cus. denied for imported plastic hangers.
2. Conditions for exemption under the Notification not fulfilled.
3. Dispute regarding export orders and re-export of goods.
4. Interpretation of conditions under the Notification.
5. Applicability of case laws.

Analysis:

1. The appellants, engaged in garment exports, imported plastic hangers under Notification No. 81/95-Cus. to claim duty exemption. However, the benefit was denied, leading to the present appeal challenging the decision of the original authority and the Commissioner (Appeals).

2. Notification No. 81/95-Cus. exempted goods from Basic Customs Duty and Additional Customs Duty if imported for specific purposes, including jobbing for export orders. The lower authorities denied the benefit as the import was not linked to any export order. The appellants argued that the hangers were exported with garments, indicating compliance with the Notification.

3. The dispute centered on whether the imported hangers were used for jobbing under an export order and subsequently re-exported to the supplier. The appellant's counsel presented Shipping Bills with AEPC endorsements as proof of specific export orders, but the SDR contended that the Notification conditions were not met, as no evidence showed job work for the overseas supplier.

4. The Tribunal accepted the SDR's argument, emphasizing the lack of evidence regarding export orders from the foreign supplier of hangers. The appellants failed to establish fulfillment of the main condition under the Notification, as the hangers were exported to different parties instead of the input supplier. The case laws cited were deemed irrelevant as they focused solely on the scope of "jobbing."

5. Ultimately, the Tribunal upheld the impugned order, dismissing the appeal due to the appellants' inability to prove compliance with the Notification conditions. The judgment highlighted the necessity of fulfilling all specified requirements to claim duty exemption under such notifications.