2019 (11) TMI 1498 - AT - Customs

Concessional rate of basic Customs duty - Notification No. 12/2012-Cus., dated 17-3-2012 - Department was of the view that the concessional rate of duty is available to prawn feed, shrimp larvae feed and fish feed which is in pellet form only - Clarification by Board vide DOF No. 334/3/2019-TRU, dated 5-7-2019 - HELD THAT - A clarification was issued by the Board vide DOF No. 334/3/2019-TRU, dated 5-7-2019 wherein it has been clarified that the concessional rate applies to prawn feed and shrimp larvae feed in all forms and fish feed in pellet form - It is seen from the above clarification that the concessional rate is applicable to prawn feed in all forms. Thus, the rejection of benefit of notification is unjustified. Appeal is allowed.

Summary

Issues:
Denial of concessional rate of duty for imported prawn feed in crumble form.

Analysis:
The appellant imported prawn feed in crumble form and claimed a concessional rate of basic Customs duty as per Notification No. 12/2012-Cus. The department denied the benefit, stating that the concessional rate applied only to prawn feed, shrimp larvae feed, and fish feed in pellet form. The appellant appealed against this decision.

During the hearing, the appellant's counsel referred to a clarification issued by the Board stating that the concessional rate applied to prawn feed and shrimp larvae feed in all forms, and fish feed in pellet form. The Departmental Representative (AR) appeared for the department.

After hearing both sides, the Tribunal considered the issue of denial of concessional rate of duty based on the form of the prawn feed. The Board's clarification explicitly stated that the concessional rate applied to prawn feed in all forms. Therefore, the Tribunal found the rejection of the notification benefit unjustified and set aside the impugned order, allowing the appeal with any consequential relief.

The judgment highlights the importance of clear interpretations of notifications and the need to consider such clarifications in determining the applicability of concessional rates of duty. The Tribunal's decision emphasizes adherence to the explicit language of notifications to prevent unjust denial of benefits to importers based on technicalities.