2011 (8) TMI 912 - AT - Customs

Imported Winding Machine under notification No.53/97- - After using, cleared to DTA on payment @ 10% on depreciated value - Show cause issued to discharge Customs duty Basic Customs Duty (BCD) @ 10%, Special Customs Duty (SCD) @ 5% and Additional duty @ 13%, - Appellant contended expression customs duty applicable relates to only the basic duty of customs and not to other duties - Held That - Since the appellant availed the exemption not only on the Basic duty of Customs, but also in respect of additional duty of Customs and Special duty of Customs at the time of importation, therefore when the goods are subsequently cleared from 100% EOU to DTA after obtaining the requisite approval, these duty liabilities have to be discharged on the depreciated value of the goods. Appeal dismissed. , notification No.53/97-Cus dated 03/06/97 grants exemption not only in respect of basic duty of customs leviable under Section 12 of the Customs Act, 1962 but also in respect of the additional duty of Customs

Summary

Issues:
Interpretation of customs duty under notification No.53/97-Cus for imported machinery clearance in DTA.

Analysis:
The appeal in question challenged an order-in-appeal regarding the clearance of imported machinery in DTA by a 100% EOU. The appellant imported a Murata Autoconer Winding Machine under a customs duty exemption notification. Subsequently, upon clearance in DTA, a show-cause notice was issued for additional duty payment. The appellant argued that the duty of Customs in the notification only pertains to Basic Customs Duty (BCD) and not other duties, citing relevant legal precedents. The respondent contended that the notification covers both BCD and additional duty, requiring compliance with specified conditions. The tribunal analyzed previous judgments cited by both parties, distinguishing them based on the scope of exemptions granted. In this case, the tribunal held that the appellant must pay duty on the depreciated value of the machinery, including BCD, additional duty, and special duty of Customs. The tribunal dismissed the appeal, directing the appellant to pay the balance duty amount after adjusting the previously paid sum, emphasizing the comprehensive duty liability encompassing various customs duties under the notification.