2008 (3) TMI 717 - AT - Customs

Summary

Issues involved: Dispute regarding duty on imported raw materials used in manufacturing goods/wastes/rejects.

Summary:
The Appellate Tribunal CESTAT AHMEDABAD, comprising Ms. Archana Wadhwa, Member (J) and Shri M. Veeraiyan, Member (T), addressed the appeals by the Revenue against the Commissioner's orders concerning the duty on imported raw materials used in manufacturing goods/wastes/rejects. The Commissioner had dropped the duty demand on the imported raw materials, stating that no duty can be sustained on them as it was not a case of removal of duty-free inputs. The Tribunal referred to a previous order and found that the provisions of Section 72 related to goods improperly removed from the warehouse, which did not apply in this case as the raw materials were used for manufacturing and not cleared in contravention of the Customs Act. As a result, the Tribunal upheld the Commissioner's decision of non-demand of duty on the raw materials and rejected the appeals by the Revenue.

In conclusion, the Tribunal found no infirmity in the Commissioner's decision and rejected the appeals by the Revenue.