2007 (6) TMI 424 - AT - Customs

Summary

Issues:
Challenge to the denial of benefit under Notification No. 55/2003 for imported spares based on their age.

Analysis:
The appeal challenges the denial of benefits under Notification No. 55/2003 for imported spares, which were considered to be more than 10 years old by the customs authorities despite the appellant providing a Chartered Engineers certificate stating the year of manufacture as 1995. The Customs Department's expert concluded that the goods were old, reconditioned, and had a residual life of over eight years, leading to the denial of the EPCG exemption. The appellant argued that the examination report was vague and did not specify the exact year of manufacture, emphasizing the importance of the Chartered Engineers certificate. Reference was made to a previous tribunal decision highlighting the significance of such documentary evidence in determining the age of imported goods.

The tribunal noted a previous decision where a similar situation led to a remand for further examination. In this case, the Chartered Engineer Certificate indicated the year of manufacture as 1995, and the tribunal found that the certificate's validity was not questioned by the Commissioner in the impugned order. The tribunal observed that the impugned order did not provide sufficient consideration to the Chartered Engineer Certificate and the visual examination conducted by the Department's expert. Therefore, similar to the previous case, the tribunal decided to remand the matter to the adjudicating authority for a fresh decision after a proper hearing.

The tribunal concluded that a fresh consideration was necessary regarding the age of the imported second-hand goods in light of Notification No. 55/2003 and Chapter 5 of the Exim Policy. The impugned order was set aside, and the appeal was allowed by way of remand for a reevaluation based on the evidence available on record. The tribunal emphasized the need for a thorough review of the age of the imported spares to determine their eligibility for the EPCG exemption under the relevant notification and policy provisions.