2024 (2) TMI 24 - AT - Customs

Effective date of notification - whether the Notification No. 46/2015-Cus dated 17.09.2015 is effective from the date of notification i.e. 17.09.2015 or the date when it was offered for sale i.e. 21.09.2015? - liability to increased rate of duty - HELD THAT - This Tribunal has taken a view that the notification shall come into effect only when the notification is offered for sale. Therefore, considering the decision in RUCHI SOYA INDUSTRIES LTD VERSUS C.C. -KANDLA 2020 (2) TMI 400 - CESTAT AHMEDABAD , in the present case since notification was offered for sale on 21.09.2015 i.e. a date when the Notification No. 46/2015-Cus came into force. The decision in the appellant s own case cited above is directly applicable in the facts of the present case. In the present case the notification is effective from 21.09.2015 therefore, the appellant are not required to pay 5% increase in duty. Accordingly, the appellant are eligible for re-assessment of bills of entry on the basis of un-amendment Notification No. 46/2015-CUS at the rate of 7.5% duty. The impugned order is set aside and appeals are allowed.

Summary

Issues involved:
The issue involved in the present case is whether Notification No. 46/2015-Cus dated 17.09.2015 is effective from the date of notification i.e. 17.09.2015 or the date when it was offered for sale i.e. 21.09.2015.

Details of the Judgment:

Issue 1: Effective Date of Notification
The appellant argued that the effective date of the notification should be 21.09.2015, as per Section 25(4)(b) of the Customs Act, since the notification was offered for sale on that date. They referred to previous Tribunal judgments and Ministry of Finance clarifications to support their claim. The respondent, on the other hand, supported the finding of the impugned order.

The Tribunal examined the legal provisions under Section 25(4) and the RTI information provided. It was noted that the notification was indeed put on sale to the general public on 21.09.2015, as confirmed by the RTI reply. The Tribunal relied on previous judgments to conclude that the notification comes into effect only when offered for sale. Therefore, in line with the legal position, the effective date of Notification No. 46/2015-Cus was considered to be 21.09.2015. Consequently, the appellant was not required to pay the 5% increase in duty, and they were eligible for re-assessment of bills of entry at the rate of 7.5% duty.

The impugned order was set aside, and the appeals were allowed with consequential relief.

(Pronounced in the open court on 29.01.2024)