2009 (1) TMI 555 - AT - Customs

Summary

Issues:
Department's appeal against Commissioner (Appeals) order dated 28-2-2006 regarding import of dry fruits via unauthorized route and denial of exemption under Notification No. 76/2003-Cus.

Analysis:

1. Unauthorized Route of Import:
The department appealed against the Commissioner (Appeals) order regarding the import of dry fruits via an unauthorized route. The original authority confiscated the goods and imposed penalties for importing through a non-permissible route not authorized by Notification No. 63/94-Cus. The Commissioner (Appeals) upheld the confiscation but reduced the redemption fine and penalty. However, the department contended that the import route was not permissible, leading to the appeal.

2. Benefit of Exemption Notification:
The main issue revolved around the denial of the benefit of exemption under Notification No. 76/2003-Cus. The Commissioner (Appeals) allowed the benefit of exemption by emphasizing that the notification did not specify any route requirement for availing the concessional rate of duty. Citing the case of CCE, Trichy v. M/s. Rukkwell Traders, the Commissioner highlighted the need for strict construction of exemption notifications based on their own words. The Tribunal concurred, stating that the exemption should be granted independent of any route conditions mentioned in other notifications.

3. Tribunal's Decision:
The Tribunal rejected the department's appeal, affirming the Commissioner (Appeals) decision regarding the benefit of exemption under Notification No. 76/2003-Cus. The Tribunal held that since there was no condition in the exemption notification regarding the route of import, the denial of the benefit was unwarranted. While the confiscation for violating the route specified in a non-tariff notification was upheld, the Tribunal found no grounds to interfere with the Commissioner's order concerning the exemption notification.

In conclusion, the Tribunal's decision centered on upholding the benefit of exemption under Notification No. 76/2003-Cus due to the absence of any route conditions, despite the confiscation of goods for violating a different notification specifying the import route. The case highlights the importance of strict interpretation of exemption notifications and the need to adhere to the specific language of such provisions.