2005 (7) TMI 170 - AT - Customs

Summary

Issues:
Appeal against Order-in-Appeal No. 221/2003-Cus., dated 28-5-2003, regarding availing concessional rate of duty under Notification No. 84/97-Cus. for imported goods on behalf of an International Organization.

Analysis:
The case involved an appeal challenging the Commissioner of Customs, Bangalore's decision regarding the eligibility for the benefit of Notification No. 84/97-Cus. for imported goods on behalf of the International Center for Genetic Engg. & Bio Technology (ICGEB), New Delhi. The lower authority demanded duty under Section 28(1) of the Customs Act, 1962, as they held that the conditions for availing the benefit of the notification were not fulfilled. The Commissioner (Appeals) upheld the Order-in-Original, leading to the appellants disputing the findings strongly.

The learned Advocate representing the appellants argued that all conditions of the Notification had been met, emphasizing that ICGEB should be considered the importer under Section 3(2) of the Customs Act, as they are the owner of the goods. Referring to a Government of India letter, it was highlighted that ICGEB fulfills the definition of an International Organisation and is eligible for the notification's benefit. On the other hand, the learned SDR contended that the appellant was not an International Organisation listed in the Notification's Annexure, thus not entitled to the benefit.

Upon careful review, it was found that the Commissioner (Appeals) held that the benefit of the Notification applied only to imports made directly by the International Organisation listed in the Annexure, not on behalf of another International Organisation. However, a Government letter clarified that the exemption extended to International Organisations as defined in the notification's explanation, which included ICGEB. The Tribunal noted that ICGEB fulfilled the conditions for being considered the importer, as per Customs Act provisions, and was entitled to the concessional rate of duty under the Notification. The appeal was allowed with consequential relief, emphasizing that ICGEB was the rightful importer of the goods.

In conclusion, the Tribunal's decision was based on a thorough analysis of the Customs Act provisions, the Notification's requirements, and the clarifications provided by the Government regarding ICGEB's eligibility as an International Organisation. The judgment highlighted the importance of fulfilling the conditions specified in the Notification for availing benefits and considered the ownership of goods in determining the rightful importer eligible for concessional duty rates.