2019 (1) TMI 1737 - AT - Customs

Concessional rate of duty - goods falling under CTH 9022 were chargeable to CVD @ 4% - Benefit of N/N. 58/2008-C.E. dated 7-10-2008 and 24/2010 dated 27-2-2010 - appellant submitted that the benefit provided under the Notifications dated 7-10-2008 and 27-2-2010 should be available to the appellant inasmuch as the said Notifications were in vogue at the time of importation of the goods - HELD THAT - The imported goods in question were assessed under sub-heading No. 90221300 of the CTH which reads as other for dental uses . Serial No. 30 of the Table appended to Notification No. 10/2006-C.E. dated 1-3-2006 vide column (4) has substituted the rate of duty from 8% to 4% by Notification No. 58/2008-C.E. dated 1-2-2008. Further the Table appended to Notification No. 20/2006-Cus. dated 1-3-2006 though has prescribed 4% SAD for the goods required for medical surgical dental or veterinary use under heading No. 9022 of the CTH but the said base Notification was amended vide Notification No. 24/2010-Cus. dated 27-2-2010 prescribing the rate of SAD as nil. In both the cases the goods were imported by the appellant after issuance of the amending Notifications dated 7-10-2003 and 27-2-2010. The Assessing Officer at the time of assessment of the Bill of Entry had not extended the duty benefit provided under the said Notifications - Thus the appellant had appropriately filed the appeal before the Learned Commissioner (Appeals) for extending the benefit provided under the said Notifications. The fact is not under dispute that the duty exemption/concessional rate of duty provided under the said Notifications were not subjected to fulfilment of any condition by the importer of the goods. Since the exemption has been provided for the goods falling under CTH 9022 the benefit should also be available to the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues: Denial of duty exemption under Notification Nos. 58/2008-C.E. and 24/2010, applicability of amended Notifications, assessment of Bills of Entry, appeals filed before Commissioner (Appeals), interpretation of conditions for concessional rates, dispute resolution.

The judgment deals with the denial of duty exemption under Notification Nos. 58/2008-C.E. and 24/2010 concerning the assessment of imported goods. The appellant imported goods falling under CTH 9022 and initially paid CVD at 8% under a specific notification. Subsequently, realizing that the goods should be governed under amended notifications providing for a lower duty rate, the appellant filed appeals before the Commissioner (Appeals) for both CVD and SAD charges. The Commissioner (Appeals) upheld the assessment orders, leading to the present dispute.

The appellant argued that since the relevant notifications were in force at the time of importation and did not specify any conditions for concessional rates, the denial of benefits by the Commissioner (Appeals) was erroneous. On the other hand, the Revenue contended that once the goods were assessed based on the initial declaration, subsequent duty exemptions could not be claimed. The Revenue supported the Commissioner's decision to reject the appeals.

Upon review, the Tribunal observed that the imported goods were correctly classified under the relevant headings and that the duty rates had been amended by subsequent notifications. The Tribunal noted that the duty exemptions were not subject to any specific conditions for the importer. As the appellant had imported the goods after the amended notifications were issued, the Tribunal found merit in the appellant's appeal and held that the benefit of the notifications should be extended to them.

Consequently, the Tribunal found no justification in the Commissioner's decision to deny the benefits of the relevant notifications to the appellant. The Tribunal set aside the impugned orders and allowed the appeals in favor of the appellant, emphasizing the availability of duty exemptions for goods falling under CTH 9022 without the need for additional conditions to be fulfilled by the importer.