2008 (6) TMI 409 - AT - Customs

Summary

Issues involved: Appeal against denial of benefit of notification No. 51/96-Cus., confiscation of goods, imposition of redemption fine, and personal penalty.

Denial of benefit of notification: The appellants, an educational institute affiliated to a university, imported goods claiming benefit of a notification based on an essentiality certificate issued by the university. Subsequently, the university withdrew the essentiality certificate, leading to a show cause notice for recovery of customs duty and confiscation of goods.

Confiscation of goods and penalty: The Adjudicating authority confirmed the demand, confiscated the goods, and imposed redemption fine and penalty. The appellants argued that they had the essentiality certificate at the time of import, and the subsequent withdrawal should not affect the import. They contended that there was no suppression or misrepresentation in availing the benefit of the notification.

Decision: The Tribunal found that the appellants availed the benefit of the notification based on the essentiality certificate, which was later withdrawn due to the appellants not being recognized as a Ph.D. research center. As they were not entitled to the benefit, the denial of the notification and confirmation of customs duty were upheld. However, considering that the goods were imported with a valid certificate, the Tribunal held that confiscation and penalty were not justified and set them aside. The appeals were disposed of accordingly.