2024 (5) TMI 794 - AT - Customs

Determination of effective date and time of implementation of Notification No. 5/2012-Cus - Whether the appeal is liable to pay safeguard duty on electrical insulators of glass which is imposed by Notification No. 5/2012-Cus (Safeguard) or otherwise - HELD THAT - It can be seen that various courts and Tribunal has taken a consistent view that the date of effect of Notification shall be from the date of publication of the Notification in the Official Gazette and not merely from the date of Notification. In the present case it is admitted fact that the publication of the Notification was made on 24.02.2013 whereas the entry inward of the import goods was allowed on 24.12.2012 therefore on that date the Notification had not come into force accordingly on the import in the present case the safeguard duty under Notification No. 5/2012-Cus dated 20.12.2012 cannot be demanded. Accordingly the impugned order is set aside and appeal is allowed. Since the entire duty demand is not sustainable as discussed above penalty on the co-appellant M/s Velji P Sons which is consequential to the demand of duty will also not sustain. Accordingly the impugned order is set aside. Appeal is allowed with consequential relief if any as per law.

Summary

Issues Involved:
1. Applicability of Safeguard Duty on Electrical Insulators of Glass.
2. Effective Date of Notification for Imposing Safeguard Duty.

Summary:

1. Applicability of Safeguard Duty on Electrical Insulators of Glass:
The core issue in the case was whether the appellant is liable to pay safeguard duty on electrical insulators of glass as per Notification No. 5/2012-Cus (Safeguard) dated 20.12.2012. The appellant argued that the goods were imported under bill of entry No. 8823356 dated 20.12.2012, with the entry inward date being 24.12.2012. The notification was published in the Official Gazette on 24.02.2013, thus not in effect on the date of entry inwards, making the safeguard duty inapplicable.

2. Effective Date of Notification for Imposing Safeguard Duty:
The Tribunal examined Section 8C of the Customs Tariff Act, 1975, which mandates that safeguard duty can be imposed via a notification in the Official Gazette. The Tribunal noted that the notification dated 20.12.2012 was published on 24.02.2013. Therefore, the safeguard duty could not be imposed on goods cleared on 24.12.2012. The Tribunal referenced multiple judgments, including GS Chatha Rice Mills (2020) and Adani Wilmar Ltd. (2023), which consistently held that the effective date of a notification is its publication date in the Official Gazette.

The Tribunal concluded that since the notification was published after the entry inward date, the safeguard duty was not applicable. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief. The penalty on the co-appellant was also dismissed as it was consequential to the duty demand.

Order:
The appeal is allowed, and the impugned order is set aside with consequential reliefs, if any, as per law. The order was pronounced in the open court on 15.05.2024.