2011 (6) TMI 613 - AT - Customs

Applicability of Exemption notification appellant herein imported Betel Nuts (Areca Nuts) claimed benefit of 60% applicable by Notification No. 105/99-Cus., dated 10-8-1999 - adjudicating authority held that the appellant is eligible only for 50% of the amount of the applied rate of duty in view of the fact that the Areca Nuts specifically mentioned in the said Notification at Sl. No. 3 of Part A Held that - in the case of Indian Petro Chemicals 1997 (92) E.L.T. 13 . Where there are two exemption notifications that cover the goods in question, the assessee is entitled to the benefit of that exemption notification which gives him greater relief, regardless of the fact that that notification is general in its terms and the other notification is more specific to the goods. appeal is allowed

Summary

Issues:
Interpretation of Notification No. 105/99-Cus., dated 10-8-1999 regarding the classification and duty exemption for imported Areca Nuts.

Detailed Analysis:

1. Facts and Background:
The appeal was filed against the Order-in-Appeal No. 40/2008, challenging the decision of the Commissioner of Customs, Central Excise, and Service Tax (Appeals), Visakhapatnam. The appellant imported Areca Nuts from Bangladesh and claimed a 60% duty exemption under Notification No. 105/99-Cus., dated 10-8-1999. However, the adjudicating authority granted only a 50% exemption based on specific mentions in the notification.

2. Contentions of the Appellant:
The appellant argued that the notification had two parts - Part A and Part B. Part A specifically mentioned Areca Nuts, while Part B referred to "All goods" eligible for a 60% exemption. The appellant contended that they should be allowed to claim the benefit that is more favorable to them, citing relevant case laws to support their argument.

3. Arguments of the Respondent:
The Departmental Representative (DR) argued that Areca Nuts were specifically listed in Part A of the notification, making the appellant eligible for only a 50% duty exemption. The DR relied on a Tribunal decision to support this position.

4. Judgment and Analysis:
After considering both sides and examining the records, the Tribunal found that the appellant had imported Areca Nuts classified under CTH 0802.90. The Tribunal analyzed the notification and noted that it provided a 50% exemption for Areca Nuts in Part A and a 60% exemption for all goods falling under CTH 0802.90 in Part B. The Tribunal agreed with the appellant's argument that they were entitled to claim the more beneficial exemption, as supported by the Supreme Court judgments cited. Therefore, the Tribunal held that the appellant was entitled to the 60% duty exemption under Part B of the notification.

5. Conclusion:
In light of the above analysis, the Tribunal concluded that the impugned order was unsustainable. The Tribunal set aside the order-in-appeal and allowed the appellant's appeal, granting them the consequential relief of the 60% duty exemption.