2018 (6) TMI 706 - AT - Customs

Advance Authorization - benefit of Authorization Scheme to imported copper concentrate - Held that - DGFT vide their letter dt. 23.11.2010 have issued a clarification as averred by him. This being so, the very basis of the dispute, does not exist any further and the copper concentrate can be very well be adjusted against fulfilment of export obligation of SION C-1503 as clarified by the DGFT - matter remanded to the original authority only for the limited purpose of applying the clarification given by the DGFT in their letter dt. 23.11.2010 in respect of impugned goods - appeal allowed by way of remand.

Summary

Issues:
1. Interpretation of duty exemption on imported copper concentrate.
2. Validity of the Deputy Commissioner's directive.
3. Effect of DGFT clarification on the dispute.

Analysis:
1. The appellant, a manufacturer of copper products, imported copper concentrate under an advance authorization specifying duty exemption for gold and silver only. The Deputy Commissioner of Customs directed that copper content in the concentrate should be cleared on payment of customs duty. The Commissioner (Appeals) upheld this view in Order-in-Appeal No.39/2010. The appellant challenged this decision.

2. During the hearing, the appellant's advocate referred to a clarification from DGFT dated 23.11.2010, stating that copper content in copper concentrate can be adjusted against export obligation. The advocate argued that this clarification rendered the Deputy Commissioner's objection invalid. The respondent's representative supported the impugned order but acknowledged the DGFT clarification.

3. After considering the submissions, the Tribunal found the DGFT clarification to be valid. As per the clarification, the dispute's basis no longer existed, allowing the adjustment of copper concentrate against export obligations. The Tribunal remanded the appeal to the original authority for applying the DGFT clarification to the impugned goods, thereby disposing of the appeal in favor of the appellant.

Conclusion:
The Tribunal's decision favored the appellant based on the DGFT clarification, allowing the adjustment of copper concentrate against export obligations. The dispute over duty exemption on copper content was resolved in the appellant's favor, emphasizing the importance of regulatory clarifications in customs matters.