2008 (8) TMI 265 - AT - Customs

Import from Nepal - applicability of Notification No. 6/2000- C.E. exempting additional duty of Customs imposed in terms of Section 3 of CTA - Notification having condition that exemption shall apply only to paper and paper board cleared for home consumption from a factory - the words cleared for home consumption are not significant as what is sought to be exempted under section 5A of the Central Excise Act is basically goods cleared for home consumption , whether imported or domestically manufactured exemption given

Summary

Issues:
1. Applicability of Notification No. 6/2000-C.E. on imported paper and paper board.
2. Interpretation of the term "cleared for home consumption" in the context of the Customs Tariff Act.
3. Comparison with previous legal judgments regarding similar issues.

Analysis:
1. The appellants imported paper and paper board under chapter heading 480200 and cleared them availing benefits of Notification No. 37/96-Cus. The dispute centered around the applicability of Notification No. 6/2000-C.E., which exempts additional duty of Customs under certain conditions. The Department contended that since the goods were imported from Nepal, the condition of being cleared for "home consumption" from a factory could not be met, applying only to clearances from Indian industries. Varying duties were confirmed against each appellant based on this interpretation.

2. The Tribunal examined the situation, noting that the imported goods were subject to customs duties under Section 3 of the Customs Tariff Act, equivalent to Central Excise duty. The Tribunal emphasized maintaining a level playing field between imported and locally manufactured goods. It was held that the benefit of Notification No. 6/2000 should apply, disregarding the specific requirement of being cleared for "home consumption" as the exemption sought was essentially for goods cleared for home consumption, aligning with Central Excise Act provisions.

3. Reference was made to a Supreme Court decision regarding the application of excise notification conditions to levying additional customs duty. The Tribunal distinguished the present case from the Supreme Court ruling, emphasizing the unique circumstances. Additionally, a Tribunal decision in a similar matter was cited, highlighting the importance of considering the nature and use of goods in determining duty liability, irrespective of whether the importer is a manufacturer or not. Based on these considerations, the Tribunal allowed the appeals, granting consequential relief to the appellants.

This detailed analysis of the judgment provides insights into the legal interpretation of Notification No. 6/2000-C.E. concerning imported goods and the significance of the term "cleared for home consumption" in the context of customs duties. The comparison with previous legal decisions adds depth to the understanding of the Tribunal's reasoning in arriving at its decision.