2006 (10) TMI 55 - HC - Customs

Exemption Appellant demand for exemption from payment of custom duty on 9 items of goods under transfer of residence rules,1978 After considering the details authority allow the appeal with consequential relief

Summary

Issues Involved:
Challenge to order denying exemption from customs duty under Transfer of Residence Rules, 1978 for 9 items of goods imported by the petitioner. Refund of duty amount paid under protest.

Analysis:

Issue 1: Denial of Exemption from Customs Duty
The petitioner, a journalist, sought exemption from customs duty on 9 items of goods imported under the Transfer of Residence Rules, 1978. The Central Government denied the benefit to certain articles, claiming they appeared new. The petitioner argued that the goods had been in her possession and use abroad for over a year. The Court noted that Rule 2(d) requires exemption if goods have been in possession and use abroad for a minimum of one year, unless examination indicates otherwise. The petitioner provided detailed explanations and evidence supporting the prior possession and use of the goods. The Court found the Central Government's conclusion that the items "look new" insufficient to deny the benefit of the Rules, as it did not disprove the petitioner's assertions. Therefore, the Court set aside the order denying exemption for the 9 items.

Issue 2: Refund of Duty Amount
The petitioner cleared the goods under protest after the order denying exemption and paid Rs. 89,600 as duty. The Court, considering the long delay and unjust withholding of the amount, ordered the respondent to refund the duty amount to the petitioner along with litigation costs of Rs. 10,000 within 8 weeks from the judgment date.

In conclusion, the Court allowed the writ petition, setting aside the order denying exemption from customs duty for the specified goods and directing the refund of the duty amount paid under protest, emphasizing the importance of justice and legal compliance in such matters.