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2018 (9) TMI 458 - AT - CustomsExemption from Additional duty of Customs - Sub Section (1) of section 116 of Finance Act 1999 - Whether additional duty of customs levied under Section 166 of the Finance Act 1999 can be demanded in respect of goods which are eligible for Exemption N/N. 94/96-Customs dated 06.12.1996? Held that - Sub Section (3) thereof extents the benefit of Exemptions under Customs Act also to the additional duty of customs levied under the Section 116 of Finance Act 1999 - so long as the exemption Notification 94/96-Customs is extended to the goods the benefit of exemption has to be allowed in respect of additional duty of customs levied under sub Section (1) of Section 116 of Finance Act 1999. Reliance was placed in the case of TOYOTA KIRLOSKAR MOTOR PVT. LTD. VERSUS COMMR. OF C. EX. BANGALORE 2007 (5) TMI 464 - CESTAT BANGALORE where it was held that From the Section 129 of the Finance Act 2001 and also from the Circular 60/01/06-CX dated 13-1-2006 issued by the CBEC it is very clear that Exemption Notification 108/1995 is applicable also to NCCD. The benefit of Exemption from additional duty of customs levied under Sub Section (1) of section 116 of Finance Act 1999 has to be extended to the goods which are entitled to exemption under Notification 94/96-Customs - appeal allowed.
Issues:
Whether additional duty of customs can be demanded for goods eligible for Exemption Notification No. 94/96-Customs under Section 116 of the Finance Act, 1999. Analysis: The appeal was filed against the confirmed demand of custom duty under Section 116 of the Finance Act, 1999. The common issue in all three cases was whether additional duty of customs under Section 166 of the Finance Act, 1999 can be demanded for goods eligible for Exemption Notification No. 94/96-Customs dated 06.12.1996. The appellant argued that goods granted exemption under Notification 94/96-Customs are entitled to full exemption from the levy of additional duty of customs under Section 116 of the Finance Act, 1999, citing relevant case law. The Tribunal examined Section 116 of the Finance Act, which allows for the levy of additional duty of customs on specified goods imported into India. The Tribunal referred to a similar provision in the Finance Act 2001 and a Circular by CBEC to establish that exemptions under the Customs Act apply to additional duty of customs as well. Relying on precedent, the Tribunal concluded that if goods are granted exemption under Notification 94/96-Customs, they should be exempt from the additional duty of customs under Section 116 of the Finance Act, 1999. The Tribunal noted that decisions cited by the Revenue were not applicable due to procedural reasons or contrary directions. It was held that the benefit of exemption from additional duty of customs under Section 116 of the Finance Act, 1999 must be extended to goods eligible for exemption under Notification 94/96-Customs. Consequently, all appeals were allowed in favor of the appellant. In conclusion, the judgment clarified the application of exemptions to additional duty of customs under the Finance Act, emphasizing that goods eligible for specific notifications should be exempt from additional duties. The decision was based on a thorough analysis of relevant legal provisions and precedents, ensuring a fair and just outcome for the appellant.
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