2008 (9) TMI 795 - AT - Customs

Summary

Issues:
Grant of benefit under Customs Notification No. 49/2000 (EPCG) to the respondents based on import of "plastic foil" under EPCG license.

Analysis:
1. The appeal by the Revenue challenges the lower appellate authority's decision to grant the benefit of Customs Notification No. 49/2000 (EPCG) to the respondents for importing "plastic foil." The Revenue contends that the imported plastic foil does not qualify as capital goods or their component, thus making the Notification inapplicable. The JCDR representing the Revenue supports this argument.

2. The respondents, on the other hand, assert that the EPCG license explicitly listed "POLYFILM HYTICLEAR GRADE-0.200 MM" as the imported goods, a fact undisputed by both parties. The respondents' counsel draws attention to Circular No. 302/18/97-CX, where the Ministry of Finance clarified that certain items, like Ultraviolet Plastic Sheets for a "Green House," should be considered as equipment qualifying for specific benefits. The respondents argue that the plastic foil imported for constructing a "Green House" should be viewed as a component of capital goods necessary for assembly or manufacturing, citing support from Board Circular No. 80/2000-Cus.

3. Upon reviewing the submissions, the Tribunal notes that the conditions of the Notification were met by the importer, and the plastic foil was explicitly covered by the EPCG license. Consequently, the Tribunal upholds that the benefit of the Notification should be extended to the respondents as per Circular No. 80/2000-Cus, which is binding on the Revenue. Therefore, the appeal by the Revenue is dismissed, and the benefit under the Notification is granted to the respondents.

This judgment clarifies the interpretation of Customs Notification No. 49/2000 (EPCG) concerning the eligibility of imported goods for specific benefits. It emphasizes the importance of adherence to license specifications and relevant circulars in determining the applicability of such notifications, ensuring that legitimate claims for benefits are recognized based on fulfilling the prescribed conditions.