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2013 (12) TMI 762 - AT - CustomsPayment of differential duty - Import of Superior Kerosene Oil - Held that - Notification No. 23/98-Cus. gives exemption only to the Superior Kerosene Oil (SKO) if it is for sale through Public Distribution System. On perusal of all the records we find that there is sale of Superior Kerosene Oil (SKO) to Railways and Air Force/Defence. In our considered view this Notification cannot be pressed into service by the learned Sr. Counsel for the prima facie view that has to be taken for waiver of pre-deposit of the amount involved. At the same time we are of the considered view that the demand of duty on sale through Public Distribution System beyond the quota may be prima facie covered under the said Notification. Applicant has not made out a prima facie case for complete waiver of the amounts adjudged - Stay granted partially.
Issues involved:
Differential duty on imported Superior Kerosene Oil (SKO) supplied to Railways, Air Force/Defence, and PDS Dealer above quota. Analysis: 1. Differential Duty on SKO: The case involves a Stay Petition for waiver of pre-deposit of Rs. 3,21,67,445 as differential customs duty on SKO imported by the Appellant. The adjudicating authority imposed an equivalent amount of penalty and interest on the confirmed duty. The issue revolves around the differential duty to be paid on SKO imported and supplied to specific entities. The Appellant sought exemption under Notification No. 23/98-Cus., arguing that the SKO imported is for sale through the Public Distribution System. The initial demand amount was recalculated by the Committee on Disputes, and the current duty stands confirmed. The Appellant had already deposited a partial amount of Rs. 99,76,425. The Appellant requested a waiver of the pre-deposit of the remaining balance. 2. Legal Interpretation of Notification No. 23/98-Cus.: The Learned Counsel highlighted Notification No. 23/98-Cus. and specifically Sl. No. 25, asserting that the exemption applies to SKO sold through the Public Distribution System. However, upon review of the records, it was found that the SKO was also sold to Railways and Air Force/Defence, which are not covered under the said Notification. The Tribunal held that the Notification could not be applied to the entire demand but acknowledged that the duty on sales beyond the PDS quota might fall under the exemption. The Tribunal concluded that the Appellant did not establish a prima facie case for a complete waiver of the adjudged amounts. Consequently, the Tribunal directed the Appellant to deposit an additional Rs. 2,00,00,000 within four weeks and stay the recovery pending the Appeal's disposal. 3. Decision and Order: After considering the arguments presented by both parties, the Tribunal ruled that the Notification only exempts SKO sold through the Public Distribution System. While the demand on sales beyond the PDS quota might be covered by the Notification, the Appellant failed to demonstrate a strong case for a complete waiver. Therefore, the Tribunal directed the Appellant to deposit Rs. 2,00,00,000 within four weeks, in addition to the amount already deposited, and stayed the recovery pending the Appeal's outcome. Compliance was required by a specified date, and the Application for waiver of the remaining balance was allowed subject to the pre-deposit conditions. This detailed analysis of the legal judgment outlines the key issues, legal interpretations, and the Tribunal's decision regarding the differential duty on imported SKO supplied to various entities, emphasizing the application of relevant notifications and the requirement for pre-deposit to secure a waiver.
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