2010 (6) TMI 399 - AT - Customs

Exemption from Education cess - notification No. 32/2005-Cus - notification provides for exemption from customs duty subject to the condition that the duty amounts are debited in the relevant tax credit certificate or DEPB scrip - Under these circumstances reliance placed by the Commissioner (Appeals) on the decision of the Tribunal in the case of CC Mumbai v. Reliance Industries Ltd - availment of drawback on cenvat credit are not relevant - decisions of the Commissioner (Appeals) based or the precedent decisions of the Tribunal and the same have been correctly applied no reason to interfere in the impugned orders

Summary

Issues:
Claim of benefit under Notification No. 32/2005-Cus.
Levy of education cess on exempted goods.
Comparison of Notification No. 32/2005-Cus. with DEPB scheme.

Analysis:
The appeals were filed against two respondents for different orders-in-appeal, but the issue was the same. A common order was passed with the consent of both sides. The appellant claimed the benefit of exemption under Notification No. 32/2005-Cus., which exempts goods imported under the Target Plus scheme from customs duty and additional duty subject to conditions. The Commissioners (Appeals) held that no education cess is leviable on goods exempted under this notification, leading to the Revenue's appeal.

The Revenue contended that the exemption under Notification No. 32/2005-Cus. is subject to duty being debited in the Tax Credit certificate, and only Basic Customs Duty and additional duty are exempted, not education cess. They argued against the reliance on a decision related to the DEPB scheme, highlighting differences between the two notifications. However, the Tribunal found no merit in the Revenue's appeal. It clarified that both schemes require duty to be considered paid when debited in the relevant certificate or scrip, providing exemption from customs duty. The Tribunal supported the Commissioner's reliance on precedent decisions and rejected the Revenue's appeals.

In conclusion, the Tribunal rejected the appeals filed by the Revenue, upholding the decisions based on precedent and correctly applied laws. The comparison between Notification No. 32/2005-Cus. and the DEPB scheme was clarified, emphasizing the conditions for duty exemption under both schemes. The Tribunal found no reason to interfere with the impugned orders, leading to the rejection of the Revenue's appeals.