2013 (12) TMI 292 - AT - Customs

Benefit of Notification No. 148/94-Cus., dated 13-7-1994, Serial No. 8 - goods were provisionally released on an undertaking executed by the appellant that the imported goods will be distributed to the poor and the needy - Failure to produce registration certificate from the Ministry of Social Justice and Empowerment under Indo-US Agreement which is required for the purpose of availing the benefit of the notification - Held that - As per Notification No. 148/94, serial No. 8, the only condition is that the assessee should be a registered society for free distribution to the poor and needy. As the appellant has produced the said certificate, therefore, the denial of benefit of exemption under Notification No. 148/94 is not justified as in the impugned order - Decided in favour of assessee.

Summary

Issues:
1. Benefit of Notification No. 148/94-Cus., Serial No. 8 denied due to failure to produce required certificate.
2. Appeal challenging denial of benefit of notification based on failure to provide evidence of distribution to the needy and poor.
3. Production of certificate by the appellant from the Ministry of Social Justice and Empowerment.
4. Interpretation of Notification No. 148/94, Serial No. 8 regarding the condition of being a registered society for free distribution to the poor and needy.
5. Decision on setting aside the impugned order and allowing the appeal with consequential relief.

The judgment revolves around the appellant's import of bulgur-wheat and oil under the US Agreement 1968, seeking the benefit of Notification No. 148/94-Cus., Serial No. 8. The appellant, initially unable to produce the required registration certificate from the Ministry of Social Justice and Empowerment, saw the benefit denied by the adjudicating authority. However, upon producing the certificate during the appeal before the Commissioner (Appeals), it was held that the appellant was entitled to the benefit but lacked evidence of distributing the imported goods to the needy and poor. The appellant contested this decision before the tribunal.

Upon review, the tribunal found that the appellant had indeed obtained the necessary certificate from the Ministry of Social Justice and Empowerment, indicating registration as a donee organization under the Indo-US Agreement 1968. This certification aligned with the conditions of Notification No. 148/94, Serial No. 8, which mandates the applicant to be a registered society for free distribution to the poor and needy. The tribunal noted that the denial of the exemption under the notification was unjustified given the appellant's compliance with the certificate requirement.

In light of the appellant meeting the criteria set forth in the notification, the tribunal set aside the impugned order and allowed the appeal, providing consequential relief as deemed necessary. This decision signifies the importance of fulfilling specific conditions outlined in notifications to avail benefits and emphasizes the significance of producing requisite documentation to support claims for duty exemptions.

---