2007 (5) TMI 480 - AT - Central Excise

Summary

Issues:
1. Eligibility for exemption from additional duty of Customs in light of excise duty exemption under Notification 6/02.
2. Interpretation of multiple exemption notifications.
3. Entitlement to the exemption under Notification 6/02.

Analysis:
1. The primary issue in this case revolves around the eligibility of the appellants for exemption from additional duty of Customs concerning the unconditional exemption available from excise duty under Notification 6/02, valid until 31-3-03. The department argued that both Notification 6/02 and Notification 7/03 were applicable at the relevant time, requiring the appellants to pay duty at the rate of 10% under Notification 7/03. However, the Tribunal disagreed with the lower appellate authority's interpretation, emphasizing that the appellants, as importers, have the right to choose the exemption under Notification 6/02, which unconditionally exempts the goods until 31-3-03, without any attached conditions. Therefore, the appellants were deemed eligible to avail of the said exemption.

2. The second issue addressed the interpretation of multiple exemption notifications. The consultant for the appellants correctly cited a Supreme Court decision in the case of H.C.L. Ltd. v. Collector of Customs, New Delhi, highlighting that when faced with two exemption notifications, the appellants are entitled to benefit from the exemption that provides them with greater relief. This legal principle was crucial in establishing the appellants' right to choose the more beneficial exemption under Notification 6/02, aligning with the Tribunal's findings.

3. Based on the cited case law and the Tribunal's analysis, it was concluded that the appellants were indeed entitled to the exemption under Notification 6/02 for the relevant period, specifically March 2003. Consequently, the impugned order was set aside, and all three appeals were allowed, granting consequential benefits to the appellants. This decision reaffirmed the appellants' right to choose the more favorable exemption and upheld their entitlement to the exemption under Notification 6/02, leading to a favorable outcome in the appeals.