2023 (12) TMI 1179 - AT - Customs

Benefit of concessional rate of CVD as per Notification No. 12/2012 dated 17.03.2012 - Polyester Staple Fibre (PSF) recycle - HELD THAT - The appellant has declared the goods as Polyester Staple Fibre recycled which indicate that the goods are manufactured from waste. However, the plea of the appellant whether they are eligible for Notification No. 12/2012-CE dated 17.03.2012 has to be verified. It is opined that the matter can be remanded to the original authority who is directed to verify whether the appellant is eligible for the benefit of Notification No. 12/2012 dated 17.03.2012. The original authority shall also consider the decisions relied upon by the appellant which have considered the very same issue and noted the retrospective application of Notification No. 12/2012. The impugned order is set aside. The appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues: Classification of imported goods under CTH, Eligibility for Notification No. 30/2004-CE, Eligibility for Notification No. 12/2012-CE

Classification Issue:
The appellant initially declared goods as 'Polyester Staple Fibre recycle' under CTH 55051090, paying CVD at 10%. However, they later sought reassessment, claiming eligibility for Notification No. 30/2004-CE, which exempts CVD for 'Recycle PSF'. The Commissioner (Appeals) upheld the original assessment, denying the benefit of the Notification. The appellant abandoned the classification contest during the appeal.

Eligibility for Notification No. 30/2004-CE:
The appellant contended that the goods, even if falling under CTH 5505, should benefit from Notification No. 12/2012-CE, which exempts certain goods from excise duty retrospectively. The retrospective nature of this Notification was highlighted, making the appellant potentially eligible for the benefit. The Tribunal noted the appellant's claim that the goods were manufactured from waste, indicating possible eligibility for the Notification.

Decision and Remand:
The Tribunal set aside the impugned order and remanded the matter to the original authority to verify the appellant's eligibility for Notification No. 12/2012-CE. The authority was instructed to consider previous decisions supporting retrospective application of the Notification. The appeal was allowed for further assessment by the adjudicating authority.

(Order dictated and pronounced in open court)