1996 (11) TMI 177 - AT - Customs

Summary

Issues:
Whether the appellants are eligible for the concession of the reimported goods under Notification No. 97/95 after canceling entries of their previous exports at Delhi in the DEEC Book.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Madras revolved around the eligibility of the appellants for the concession of reimported goods under Notification No. 97/95 after canceling entries of their previous exports in the DEEC Book. The learned Advocate for the appellants gave up their claim for the benefit of Notification No. 158/95 and focused on the benefit of Notification No. 97/95. The key contention was whether the cancellation of logging in the DEEC Book and the subsequent permission to convert the DEEC Shipping Bill into a non-DEEC Shipping Bill would render the earlier export under the DEEC Scheme as non est. The impugned order acknowledged this argument and held that the appellants could be eligible for the concessions under Notification No. 97/95 based on a strict legal interpretation. The Appellate Tribunal noted that the Department did not challenge the findings of the Collector (Appeals) in Para 13 of the impugned order, which supported the appellants' eligibility for the benefit. Consequently, the Tribunal held that the appellants should be granted the benefit of Notification No. 97/95, and the required cancellation in the DEEC Book should be carried out by the Assistant Collector, Delhi.

The Tribunal emphasized that if the appellants wished to clear the goods, they should be allowed clearance upon executing a Bond to the satisfaction of the authorities after being granted the benefit of Notification No. 97/95. In support of their decision, the Tribunal referred to a Supreme Court case where a similar principle was applied, granting benefit to the appellants after the reversal of Modvat credit. Drawing a parallel, the Tribunal concluded that if the DEEC entries were canceled, the appellants were entitled to the benefit of Notification No. 97/95, as agreed in principle by the Collector (Appeals) in the impugned order. Therefore, the appeals were allowed, and the appellants were granted the benefit of Notification No. 97/95, subject to the necessary cancellation in the DEEC Book and compliance with the prescribed procedures.