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Import of Indian origin goods under Advance Licence Scheme, denial of duty free benefit, applicability of Circulars and Notifications, waiver of pre-deposit of duty. Analysis: The case involved the import of a drug intermediate under an Advance Licence against duty-free benefit claimed under a specific Notification. The Ministry of Finance, in consultation with DGFT, decided that duty-free import of Indian origin goods should not be allowed under the Advance Licence Scheme. This decision was based on a Policy Circular and directions from the Ministry. The Customs authorities finalized the assessment without extending the duty-free benefit, leading to a demand for duty payment, which was challenged by the applicants before the Commissioner (Appeals) unsuccessfully. The advocate for the applicants argued that the relevant Export-Import Policy and Notification did not prohibit the import of Indian origin goods under the Advance Licence. He also contended that a specific Policy Circular should not apply retroactively to licenses issued before its issuance date. He cited legal precedents to support his arguments. The Tribunal referred to a judgment by the Hon'ble Calcutta High Court in a similar case where it was held that duty-free import cannot be denied based on subsequent Circulars if the license did not contain any such stipulation. The Tribunal noted that in the present case, the import was made before the issuance of the relevant Circular. It was emphasized that Circulars cannot override statutory Notifications. The Tribunal also referred to a Supreme Court judgment stating that Circulars contrary to statutory provisions have no legal standing. Considering the arguments and legal precedents, the Tribunal found that the applicants had a strong case for the complete waiver of the duty demanded. Accordingly, the Tribunal dispensed with the pre-deposit of the duty and stayed the recovery pending the appeal's disposal. This decision was pronounced in court on 7-9-2009.
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