2016 (12) TMI 697 - AT - Customs

Benefit of exemption Notification No. 132/94-Cus dated 20.06.1994 - non-fulfillment of condition of notification - Held that - the appellant is under obligation to produce the certificate that the goods are required for such petroleum operations and have been imported under aforesaid contract, therefore we do not find any infirmity in the impugned order, whereby it was directed to produce the end use certificate as required under the notification. In this scenario, we are of the view that the matter needs to be remanded to original authority to pass a fresh order by taking into account the observations of the findings given by the Commissioner(Appeals) - Appeal is allowed by way of remand.

Summary

Issues involved:
Claim of exemption under Notification No. 132/94-Cus dated 20.06.1994 for imported equipment; Allegation of non-fulfillment of conditions of the notification; Adjudication without personal hearing; Appeal challenging the Order-in-Original dated 09.02.2005; Commissioner (Appeals) directing production of end-use certificate; Question of natural justice principles in passing the original order.

Analysis:
The case involved the appellant, M/s. Larson & Turbro Ltd., importing equipment and claiming exemption under Notification No. 132/94-Cus dated 20.06.1994. The Assistant Commissioner issued a Show Cause Notice alleging non-fulfillment of conditions, specifically regarding the end use of imported goods and foreign exchange remittance. The adjudication of the Show Cause Notice was done without a personal hearing, leading to the appellant filing an appeal before the Commissioner (Appeals) against the Order-in-Original dated 09.02.2005.

During the appeal, the appellant contended that the original order was passed without a hearing, violating natural justice principles. The Commissioner (Appeals) almost allowed the exemption but directed the appellant to produce a certificate regarding the end use of imported goods. The appellant argued that this condition was not raised in the Show Cause Notice, making the order beyond its scope. The Revenue supported the findings of the impugned order.

Upon careful consideration, the Tribunal found that the appellant was required to produce a certificate from a government officer regarding the necessity of the imported goods for petroleum operations, as per the conditions of the notification. Therefore, the Tribunal upheld the direction to produce the end-use certificate and remanded the matter to the original authority for a fresh adjudication order. The appellant was granted a personal hearing, and the Tribunal emphasized the need for early disposal of the case, considering its vintage from 2005.

In conclusion, the appeal was allowed by way of remand to the Original Adjudicating Authority, emphasizing the importance of following procedural fairness and ensuring compliance with the conditions of the exemption notification for imported goods related to petroleum operations.