2003 (10) TMI 139 - AT - Central Excise

Summary

Issues involved: Interpretation of Clause (b) of the 3rd proviso to Notification No. 2/95-C.E., dated 4-1-1995 regarding the calculation of the total value of impugned goods cleared under specific Exim Policy provisions.

Analysis:
1. The issue in this appeal revolves around the interpretation of a specific clause in a notification related to the value of goods cleared under certain provisions of the Exim Policy. The appellants argue that both goods physically exported and deemed exports should be considered for calculating the total value under the clause.

2. The learned Advocate referred to a previous Tribunal decision and emphasized that the impugned order incorrectly applied a decision related to a different notification. The Tribunal noted that the notification in question specifically refers to the free on board value of exports, which entails physical exportation out of India. The Tribunal agreed with the Adjudicating authority that the calculation should be limited to physical exports and not extended to include deemed exports, as the notification does not mention deemed exports.

3. The Tribunal highlighted the importance of adhering to the terms of the exemption notification issued by the Finance Ministry. It emphasized that the exemption is linked to the value of exports and not to the clearances allowed by the Development Commissioner. Additionally, the Tribunal noted that the satisfaction of customs authorities, not the Development Commissioner, is crucial as per the notification.

4. Ultimately, the Tribunal concluded that the Adjudicating authority's decision was legally sound and correct. It found no grounds for interference with the impugned order and dismissed the appeal accordingly. The judgment underscores the significance of strict adherence to the terms of exemption notifications and the role of customs authorities in determining entitlement to duty exemption.

This detailed analysis provides a comprehensive understanding of the judgment's rationale and the legal principles applied in resolving the issues raised in the appeal.