2008 (3) TMI 106 - AT - Customs

Appellants imported a consignment of Zinc Oxide and claimed benefit of concessional rate of duty u/not. 155/94 - benefit is subject to the condition that appellant has to produce a duty exemption certificate from the officer - appellant had been changing their stand to claim benefit u/not. 150/94 instead of 155/94 - appellants have been unable to procure such a certificate by mentioning the correct Notification No. and Serial No. under which the benefit is being claimed benefit not allowed

Summary

Issues:
Import of Zinc Oxide, Benefit of Notification No. 155/94, Duty Exemption Certificate Requirement, Alternative Plea under Notification No. 150/94, Changing Stand of Appellants, Correct Serial Number Identification, Dismissal of Appeal.

Analysis:
The case involves the appellants' import of Zinc Oxide and their claim for the concessional rate of duty under Notification No. 155/94, which mandates a duty exemption certificate from a Joint Secretary to the Government of India, Ministry of Defence. Due to the appellants' failure to produce this certificate, the goods were provisionally assessed and later finalized with the denial of the Notification's benefit, resulting in a confirmed duty of Rs. 1,89,050. The Commissioner (Appeals) upheld this decision.

The appellants, despite being given a hearing notice, opted to have the matter decided based on their grounds of appeal and written submissions. However, their stance shifted over time, initially claiming benefit under Notification No. 155/94 but later requesting consideration of an alternative plea under Notification No. 150/94, a plea not entertained by the Commissioner (Appeals). In their written submissions, the appellants reiterated their entitlement to the benefit of Notification No. 155/94, citing a technical error in the certificate submitted, which incorrectly referenced Notification No. 195/76 instead of 155/94, without specifying the serial number for the claim.

Upon reviewing both Notification No. 150/94 and 155/94, the Tribunal noted the specific categories eligible for exemption under each. Notification No. 155/94 pertains to items for armoured and specialized vehicles for Defence Services, while the goods in question were intended for Indian Navy Ships, falling outside this category. The requirement for a certificate from a Joint Secretary was deemed necessary for both Notifications, and the appellants' failure to correctly identify the serial number under which they sought benefit led to the dismissal of their appeal for lack of merit.

In conclusion, the Tribunal found no justification for granting the appellants the benefit of Notification No. 155/94 due to the mismatch between the intended use of the goods and the specified categories under the Notification. The inability to procure the requisite certificate with the correct serial number further weakened their case, resulting in the dismissal of their appeal.