1998 (2) TMI 272 - AT - Customs

Summary

Issues:
1. Validity of advance licence at the time of clearance from Customs charge.
2. Interpretation of the notification regarding duty exemption for goods imported against an advance licence.

Analysis:
The appellant imported plastic under an advance licence and stored the goods in a bonded warehouse. The licence had lapsed by the time the goods were cleared from the warehouse. The Additional Collector held that the benefit of the notification could not be extended as the appellant did not have a valid licence at the time of clearance. The appellant argued that the goods were covered by a licence when imported, regardless of the licence's validity at the time of final clearance.

The Departmental Representative contended that a valid advance licence must be produced at the time of clearance from Customs, according to the notification. The notification exempts goods imported against an advance licence, including those imported under any valid licence at the time of clearance. The Additional Collector confirmed that the importer had a valid advance licence when the goods arrived in Bombay, which was not disputed by the Department.

The Tribunal noted that although the licence had lapsed by the time of final clearance, the importation was initially made under a valid advance licence. The purpose of the notification was to ensure goods not initially covered by an advance licence but subsequently licensed would still benefit from duty exemption. Despite the unusual decision to bond the goods, the Tribunal upheld the appeal based on the Additional Collector's finding of a valid advance licence at the time of initial importation.

In conclusion, the Tribunal allowed the appeal and set aside the impugned order, emphasizing that the initial importation under a valid advance licence justified granting the benefit of duty exemption, even though the licence had lapsed by the time of final clearance.