2001 (11) TMI 131 - AT - Customs

Summary

Issues:
1. Interpretation of Notification 34/97 regarding exemption from duty under DEPB Scheme.
2. Compliance with conditions for exemption under Notification 34/97.
3. Applicability of special additional duty of customs.
4. Entitlement to exemption under Notification 34/98.

Analysis:

1. The case involved the appellant, an importer, who imported chemicals under the Duty Entitlement Pass Book (DEPB) Scheme without paying duty under Notification 34/97. The issue was the subsequent proposal to recover special additional duty of customs not paid on these goods.

2. Notification 34/97 exempts goods from basic and additional duty of customs for importers with a Duty Entitlement Pass Book. The DEPB scheme grants credit to exporters based on export value. The exemption under this notification does not cover special additional duty of customs, which is specified in Notification 34/98 exempting 13 categories of goods.

3. The importer contended compliance with Notification 34/97 conditions before the Commissioner (Appeals), who disagreed, stating the duty payable was not debited in the pass book for special additional duty. However, the Tribunal clarified that the exemption under Notification 34/97 pertained only to basic and additional duties, not special additional duty. Therefore, failure to debit special additional duty did not violate the notification's condition.

4. The Tribunal allowed the appeal, setting aside the Commissioner's order. It held that the appellant was entitled to exemption under clause 30 of Notification 34/98 for goods imported and cleared during the relevant period. The judgment clarified the distinction between basic, additional, and special additional duties under the customs notifications, ensuring correct interpretation and application of the exemption provisions.