2007 (7) TMI 449 - AT - Customs

Summary

Issues:
1. Levy of Special Additional Duty (SAD) under Section 3A of the Customs Tariff Act on imported goods cleared from warehouse.

Analysis:
The case involved the question of whether Special Additional Duty (SAD) under Section 3A of the Customs Tariff Act was recoverable on imported goods cleared from the warehouse. The appellants argued that since the duty was not levied when the goods were imported, it was not recoverable upon clearance from the warehouse. However, the learned Commissioner (Appeals) relied on the Supreme Court's judgment in Kiran Spinning Mills v. Collector of Customs, which established that the taxable event occurred when the goods crossed the customs barrier, not when they were initially imported. The appellants contended that the Kiran Spinning Mills decision was inapplicable as it pertained to countervailing duty.

The absence of representation from the appellants during the proceedings was noted, despite due notice and no request for adjournment. The tribunal considered the arguments presented and heard the learned Departmental Representative (DR).

Upon careful consideration, the tribunal found that the Supreme Court's decision in Kiran Spinning Mills was directly relevant to the present case. It was established that the taxable event for SAD occurred when the goods were physically cleared from the warehouse for home consumption, after the levy had come into effect. Despite the Kiran Spinning Mills case involving countervailing duty, the tribunal determined that the ruling was applicable to the current scenario. Therefore, the learned Commissioner (Appeals) correctly applied the Supreme Court's ruling to the case at hand.

Consequently, the tribunal upheld the impugned order, dismissing the appeal. The decision was dictated and pronounced in open court.