2007 (8) TMI 505 - AT - Central Excise

Summary

Issues:
Whether the appellants are entitled to avail the benefit of exemption Notification No. 26/2000-Cus., dated 1-3-2006 in respect of importation of Bakery Shortening under Indo Sri Lanka Free Trade Agreement.

Analysis:
The case revolved around the appellants' entitlement to the benefit of exemption under Notification No. 26/2000-Cus. for importing Bakery Shortening under the Indo-Sri Lanka Free Trade Agreement. The appellants purchased the goods on High Sea Sale Basis, and the Commissioner denied the exemption citing a violation of condition (4) of the notification. The appellants argued that they followed the procedure specified by the Government of India, as per Notification No. 32 (RE-2006)/2004-2009, and provided certificates from the Board of Investment of Govt. of Sri Lanka confirming the goods left the factory premises before the specified date. The appellants contended they fulfilled the conditions and relied on a decision by the Punjab & Haryana High Court supporting their claim.

The dispute centered on whether the appellants complied with the conditions of the exemption notification and the subsequent notifications issued by the DGFT. The Revenue alleged that the appellants manipulated the Bill of Lading date to show compliance, while the appellants presented certificates proving timely export from Sri Lanka. The Tribunal examined the relevant notifications, including Public Notice No. 17 (RE-2006)/2004-09 and Notification No. 32 (RE-2006)/2004-2009, which allowed import under specific conditions. The Tribunal noted that the appellants' certificates from the Board of Investment of Sri Lanka confirmed compliance with the conditions specified in the DGFT notifications. Additionally, the appellants had made full payment in advance, as per the requirements. The Tribunal emphasized that the appellants met the conditions outlined in the notifications and that the Revenue's argument against the exemption was unfounded. Consequently, the Tribunal set aside the impugned order and allowed the appeals with consequential relief.

In conclusion, the Tribunal ruled in favor of the appellants, determining that they were entitled to the benefit of the exemption notification for importing Bakery Shortening under the Indo-Sri Lanka Free Trade Agreement. The Tribunal found that the appellants had fulfilled the conditions stipulated in the relevant notifications issued by the DGFT and had provided necessary certificates to support their claim, ultimately leading to the decision to set aside the previous order and grant the appeals with consequential relief.