2018 (4) TMI 303 - AT - Customs

Benefit of duty free clearance - N/N. 148/1994 dated as amended (Sl. No, 8) - denial of benefit for the reason that the appellant could not satisfy the condition imposed in the notification that the goods should be supplied free of cost by the foreign Government - Held that - The Certificate issued by the European Union dated 09.11.1999 categorically states the plant and machinery under import is meant for the pilot project being set up by the appellant at Muvattupuzha, Ernakulam, Kerala and further that the equipments were supplied free of cost in terms of the bilateral agreement between the Government of India and European Union - the goods under import by the appellant satisfied the condition specified in the N/N. 148/1994. The goods are entitled to duty free clearance - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against denial of benefit under Notification No. 148/1994 for duty free clearance of imported machinery supplied under a bilateral agreement.

Analysis:
The appellant imported machinery for a Fruit Processing Plant and claimed duty free clearance under Notification No. 148/1994. The Commissioner (Appeals) denied the benefit as the goods were not supplied free of cost by the foreign Government as required by the notification. The appellant contended that the equipment was supplied free of cost under a bilateral agreement between the Government of India and the European Union. The European Union issued a certificate confirming the same. The appellant argued that the equipment satisfied the conditions of the notification, as stated in Clause 3(d) of the agreement. The appellant appealed against the decision.

During the hearing, the appellant's counsel reiterated that the equipment was supplied free of cost under the bilateral agreement. The Departmental Representative (DR) supported the impugned order. The Tribunal examined the appeal record and the certificate issued by the European Union. The certificate confirmed that the machinery was meant for a pilot project and supplied free of cost under the bilateral agreement. The Tribunal concluded that the goods met the conditions specified in Notification No. 148/1994. Therefore, the appellant was entitled to duty free clearance under the notification, and the appeal was allowed. The impugned order was set aside.

In summary, the Tribunal ruled in favor of the appellant, allowing duty free clearance for the imported machinery supplied under the bilateral agreement between the Government of India and the European Union. The decision was based on the certificate issued by the European Union, confirming that the equipment was provided free of cost as per the agreement, meeting the conditions of Notification No. 148/1994.