2010 (3) TMI 967 - AT - Customs

Summary

Issues:
- Appeal against demand of additional customs duty under Section 3A of Customs Tariff Act
- Challenge of Show Cause Notice before Hon'ble Guwahati High Court
- Exemption from payment of duty for import of beer from Nepal under treaty with the Government

Analysis:
The appellant filed an appeal against the demand of additional customs duty imposed under Section 3A of the Customs Tariff Act, challenging the order passed by the Commissioner of Customs. The appellant contended that the Show Cause Notice for the demand was already under challenge before the Hon'ble Guwahati High Court, and an order dated 26-9-2003 restrained the Revenue from enforcing the demand for the period in question upon furnishing a bank guarantee. The appellant argued that as the issue was pending before the High Court, the Commissioner's order was not sustainable. Additionally, the appellant claimed that under a treaty with the Government of Nepal, the import of beer was exempted from payment of Basic Excise Duty under various notifications, indicating the government's intention not to impose any duty on beer imports from Nepal.

The Revenue, on the other hand, contended that there was no exemption from payment of the duty imposed under Section 3A of the Customs Tariff Act. In the absence of any exemption notification, the appellants were held liable to pay the duty in question. The Hon'ble Guwahati High Court, through an order dated 26-9-2003, only restrained the Revenue from enforcing the demand under the Show Cause Notice upon furnishing a bank guarantee, while directing the petitioner association to continue paying the duty prospectively.

The Tribunal found that as there was no stay of proceedings following the Show Cause Notice, there was no merit in the appellant's argument to keep the matter pending. During the arguments, the appellant failed to produce any notifications exempting the duty imposed under Section 3A of the Customs Tariff Act. Since there was no exemption from payment of additional customs duty leviable under Section 3A of the Customs Tariff Act, imposed under the Finance Act, 2001, the Tribunal dismissed the appeal, upholding the demand for additional customs duty.