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2024 (12) TMI 1155 - AT - CustomsExemption under N/N. 43/2002-Cus dated 19.04.2002 on import of duty free raw materials such as HDPE, LDPE granules, Master Batch and High Speed Diesel (HSD) etc. - Department is of the view that since the additional duty of Customs at the rate of Rs. 1 per liter was imposed by the Finance Act, the appellant is not entitled to the benefit of N/N. 43/2002-Cus dated 19.04.2002 - HELD THAT - The matter is no longer res-integra as this Tribunal has already decided the issue in case of Atlantic Shipping Pvt. Limited vs. Commissioner of Customs, Jamnagar (Prev.) 2018 (9) TMI 458 - CESTAT AHMEDABAD where it was held that ' the benefit of exemption from additional duty of Customs levied under sub-section (1) of Section 116 of Finance Act, 1999 has to be extended to the goods which are entitled to exemption under Notification No. 94/96-Cus.' The matter has already been decided in favour of the appellant and therefore, the impugned order-in-appeal is without any merit - Appeal allowed.
Issues:
Interpretation of Notification No. 43/2002-Cus dated 19.04.2002 regarding exemption of duty on imported materials under DEEC Scheme. Applicability of additional duty of Customs on HSD oil under section 116 of the Finance Act, 1999. Precedential value of the decision in the case of Atlantic Shipping Pvt. Limited vs. Commissioner of Customs, Jamnagar (Prev.) - 2019 (370) ELT 577 (Tri. Ahmd.). Interpretation of Notification No. 43/2002-Cus dated 19.04.2002: The appellant, a manufacturer and exporter of plastic bags and sacks, were granted an advance license to import duty-free raw materials under the DEEC Scheme. The issue arose regarding the exemption of duty on imported materials under Notification No. 43/2002-Cus dated 19.04.2002. The department contended that since an additional duty of Customs on HSD oil was imposed by the Finance Act, the appellant was not entitled to the benefit of the notification. However, the Tribunal, relying on previous decisions, held that the benefit of exemption must be extended to goods entitled to exemption under the notification, following the interpretation of similar provisions in other cases. Applicability of additional duty of Customs on HSD oil: The department argued that the additional duty of Customs on HSD oil under section 116 of the Finance Act, 1999, should disqualify the appellant from availing the benefits of the exemption notification. The Tribunal analyzed the relevant provisions and held that the exemption from additional duty of Customs must be extended to goods covered by the exemption notification, drawing on precedents and interpretations of similar provisions in other cases. Precedential value of the decision in Atlantic Shipping Pvt. Limited case: The appellant relied on the decision in the case of Atlantic Shipping Pvt. Limited vs. Commissioner of Customs, Jamnagar (Prev.) - 2019 (370) ELT 577 (Tri. Ahmd.) to support their claim. The Tribunal, after considering the arguments from both sides, concluded that the matter had already been settled in favor of the appellant based on the precedent set by the Atlantic Shipping case. As a result, the impugned order-in-appeal was deemed to be without merit, and the appeal was allowed in favor of the appellant.
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