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2017 (1) TMI 1480 - AT - CustomsLevy of ADD - Tablet PC - Retrospective effect or prospective effect? - Held that - the Commissioner (Appeals) has given the benefit for the period which was not covered by the Board Circular. For penal provisions no law can be implemented retrospectively unless specifically mentioned. In the instant case for levy of Additional Duty Circular cannot be implemented retrospectively - appeal dismissed - decided against Revenue.
Issues: Classification of imported goods under Customs Tariff Act, retrospective implementation of Circular for duty calculation, relief granted by Commissioner (Appeals), appeal by Department against relief granted.
In this case, the Department filed an appeal against the Order-in-Appeal passed by the Commissioner of Customs (Appeals), New Delhi, regarding the classification of imported 'Tablet PC' and the duty rate applicable. The assessee had initially declared the goods under CTH 8517 and paid duty at 2%. However, a subsequent Circular issued by the Board classified the product under Heading 8471 with a duty rate of 12%. The Department retroactively applied this Circular to demand duty for the earlier period, while the assessee had paid duty at the lower rate for a year after the Circular was issued. The Commissioner (Appeals) granted partial relief, noting that no duty at 12% was leviable when the Circular was issued. The Department, aggrieved by this decision, appealed. Upon review, the Tribunal found that the relief granted by the Commissioner (Appeals) was justified. The Tribunal emphasized that penal provisions cannot be implemented retrospectively unless explicitly stated. In this case, the Circular for the levy of Additional Duty could not be applied retrospectively. The Tribunal concluded that the Commissioner's decision to provide relief for the period not covered by the Circular was appropriate. Consequently, the Tribunal upheld the order of the Commissioner (Appeals) and dismissed the appeal filed by the Department. The Tribunal highlighted that the Circular could not be enforced retroactively for duty calculation, affirming the relief granted by the Commissioner (Appeals) based on the specific circumstances of the case.
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