2005 (12) TMI 181 - AT - Customs

Summary

Issues:
- Imposition of Special Additional Duty (SAD) on imported machinery.
- Applicability of SAD introduced after the import of goods.
- Interpretation of Apex Court judgment in LML Ltd. v. CC, Kanpur.
- Benefit of duties imposed after the date of import.
- Admissibility and relevance of Tribunal judgments in similar cases.
- Effect of Apex Court's decision on Tribunal orders.

Analysis:
1. The appellant challenged the imposition of Special Additional Duty (SAD) on imported machinery, arguing that the duty was introduced after the goods were imported, making it inapplicable. The machinery was imported from China between 1995 to 1997 and cleared in 1998 under different Bills of Entry. The Counsel relied on the fact that the SAD was not in place at the time of import, hence should not be charged.

2. The Counsel cited Tribunal judgments like DCW Limited v. CC, Trichy and others, emphasizing that duties imposed post-import should not be levied. The Counsel also mentioned the Apex Court judgment in LML Ltd. v. CC, Kanpur, which was considered in a previous appeal. The Counsel argued that the Tribunal's later judgment granted benefits for duties introduced after import, based on the Customs Act.

3. The learned SDR countered, noting that the Apex Court had not overturned its earlier decision in LML Limited, and therefore, the Tribunal should follow that precedent. The SDR highlighted that there was no stay on the Apex Court's decision in the appellant's case, supporting the appeal's dismissal.

4. Upon careful consideration, the Tribunal found merit in the SDR's arguments. Referring to the President Bench's decision in a similar case, the Tribunal upheld the imposition of SAD based on the Apex Court's judgment in LML Limited. The Tribunal emphasized that the taxable event for customs duty occurs upon goods clearance, making the SAD applicable in this case. The Tribunal set aside the Commissioner's decision and reinstated the adjudicating authority's order, rejecting the appeal accordingly.

5. The Tribunal concluded that it was bound by the Apex Court's decision in LML Limited, as it had not been overturned by a Larger Bench. Following the Apex Court's ratio applied in the appellant's case, the Tribunal rejected the appeal, aligning with the precedent set by the Apex Court's interpretation of customs duty events.

In summary, the Tribunal upheld the imposition of SAD on imported machinery, citing the Apex Court's judgment in LML Limited and rejecting the appeal based on the applicable legal principles and precedents established in similar cases.