2018 (2) TMI 489 - AT - Customs

Benefit of N/N. 30/2004-CE dated 09.07.2004, in respect of additional duty of customs equal to excise duty - imported silk fabrics classifiable under the Tariff item No.5007 - denial on the ground that it was applicable only to the goods manufactured in India and not to the imported goods since there is a condition that there is no cenvat credit is availed on inputs. Held that - identical issue decided in the case of CC (Exports), Chennai Vs. Prashray Overseas Pvt. Ltd. 2016 (5) TMI 1106 - MADRAS HIGH COURT , where it was held that In cases where the exemption Notification stipulates two conditions, namely that the inputs should have suffered duty and that no CENVAT credit should have been availed, then the benefit of the Notification will be available only if both conditions are satisfied. Benefit of notification cannot be allowed - appeal dismissed - decided against appellant.

Summary

Issues:
Import of silk fabrics, Benefit of Notification No.30/2004-CE, Condition of no Cenvat credit on inputs, Maintainability of appeal, Applicability of High Court judgment.

Analysis:
The case involved the appellants importing silk fabrics and claiming the benefit of Notification No.30/2004-CE, which exempted additional duty of customs equal to excise duty on imported silk fabrics. The original authority denied the exemption, stating it was only applicable to goods manufactured in India without availing Cenvat credit on inputs. The Commissioner (Appeals) rejected the appeal, citing lack of evidence of claiming the benefit during assessment. The appeal before the tribunal challenged this decision (para 1).

During the hearing, the appellants' advocate acknowledged a similar issue decided against the appellants by the High Court of Madras in a specific case. The tribunal examined the relevant portions of the High Court judgment, emphasizing the conditions for availing the exemption under Notification No.30/2004-CE. The judgment highlighted the necessity for inputs to have suffered duty and no Cenvat credit to be availed. It clarified scenarios where importers could or could not benefit from such exemptions based on fulfillment of stipulated conditions (para 2, 3).

Applying the principles established by the High Court judgment, the tribunal found no merit in the appeal and dismissed it. The decision was based on the inability of the appellants to satisfy the conditions specified in the exemption notification, particularly regarding the payment of duty on inputs and non-availment of Cenvat credit. The tribunal's ruling aligned with the interpretation and application of the law as elucidated in the High Court judgment, leading to the dismissal of the appeal (para 4).