2014 (10) TMI 631 - AT - Customs

Benefit of Notification No. 203/92-Cus - appellants purchased Valued Based Advance Licence (VABAL) from the market in respect of the goods exported. - allegation that appellants failed to show that input stage credit has not been availed by the manufacturer of the exported good - Held that - Issue is settled by the decision of the Hon ble Supreme Court in the case of Commissioner of Customs (Imports), Bombay vs Hico Enterprises - 2008 (4) TMI 117 - SUPREME COURT . The Hon ble Supreme Court held that the purchaser of VABAL is not liable to prove export obligation for the benefit of Notification No. 203/92-Cus. In view of the above decision of the Hon ble Supreme Court, the impugned order is set aside - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT MUMBAI allowed the appeal filed by the appellants against the order of the Commissioner (Appeals) demanding duty of Rs. 3,72,573/- along with interest, fine, and penalty. The appellants purchased Valued Based Advance Licence (VABAL) and were denied the benefit of Notification No. 203/92-Cus. However, the Hon'ble Supreme Court ruled in Commissioner of Customs (Imports), Bombay vs Hico Enterprises that the purchaser of VABAL is not required to prove export obligation for the benefit of the notification. Therefore, the impugned order was set aside, and the appeal was allowed.