2013 (11) TMI 702 - AT - Customs

Benefit of Notification No.11/97-Cus. - Clearing Sheet for making insole by filing Bills of Entry - Held that - On perusal of Notification No.11/97-Cus, we do not find any condition prescribed for the purpose of availment of benefit of notification. We also find strong force in the submissions made by ld. Counsel that CBE&C circular, which has been relied upon by the first appellate authority, cannot put condition which were not found in the notification - Following decision of case in Inter-Continental (India) 2008 (4) TMI 23 - Supreme court - Appellants have made out the case for waiver of the pre-deposit of the amounts involved. Accordingly, the applications for waiver of pre-deposit of balance amounts involved are allowed and recovery thereof stayed till the disposal of appeals - Stay granted.

Summary

Issues:
Waiver of pre-deposit of duty liability under Notification No.11/97-Cus for 'Sheet for making insole' clearance.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad pertains to two Stay Petitions seeking waiver of pre-deposit of duty liability amounting to Rs.2,55,787/- along with interest. The issue revolves around the clearance of 'Sheet for making insole' by the appellant under Notification No.11/97-Cus. The goods were provisionally assessed and allowed to be cleared, but a Customs Laboratory test report categorized them as laminated/coated with polyurethane, potentially falling under Heading No.94 of the said notification. The appellant claimed that the items fell under a specified list in 3(A) of Notification No.11/97-Cus. The first appellate authority, however, required an end-use certificate for availing exemption under the notification, citing a Circular by CBE&C. The Tribunal, after examining the notification and legal precedents, found no such condition in the notification itself. It emphasized that a circular cannot impose conditions not present in the notification, citing the judgment of the Hon'ble High Court of Gujarat in the case of Inter-Continental (India) and its affirmation by the Hon'ble Apex Court.

The Tribunal concluded that the appellants had established a case for the waiver of pre-deposit of the amounts in question. Consequently, the applications for the waiver of pre-deposit of the balance amounts were allowed, and the recovery was stayed until the appeals were disposed of. The judgment highlights the importance of adherence to the conditions explicitly laid out in notifications and the limitations on additional requirements imposed through circulars. The decision underscores the significance of legal clarity and consistency in interpreting customs notifications for duty liability determinations.