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Interpretation of exemption notifications under Customs Act regarding the rate of duty applicable to exported goods under Pass Book Scheme. Analysis: The case involved a dispute over the rate of duty applicable to the export of "Ceramic Colour-Liquid Gold 10%" under the Pass Book Scheme. The designated authority forwarded relevant shipping bills to the adjudicating authority for verification of international prices and duty rates applicable to various inputs. The appellant contested the credit entitlement based on the rate of duty proposed by the adjudicating authority, leading to an appeal before the Tribunal. The appellant argued that the rate of duty for credit under Notification 104/95-Cus. should be based on the customs duties chargeable under the Customs Tariff Act, read with relevant notifications. The appellant emphasized that the duty rate should be applicable to the facts of the case, pointing out that the conditions of Notification 117/94-Cus. were not fulfilled in their situation, thus should be disregarded in determining the credit rate. The Tribunal rejected the contention that the matter did not relate to a question of rate of duty, asserting its jurisdiction over interpreting the exemption notifications. It clarified that the dispute revolved around the interpretation of clauses in the exemption notifications issued under Section 25(1) of the Customs Act, dealing with nil or concessional rates of duty. The Tribunal emphasized that the duty on gold should be paid in Indian currency, as per the Pass Book Scheme, and not in convertible foreign currency as suggested by the respondent. It highlighted that the appellant receives credit in Indian currency, making foreign currency payment for duty impractical. Therefore, Notification 117/94-Cus. could not be applied to determine the credit rate for the export of liquid gold. Furthermore, the Tribunal found that the presumption made by lower authorities that gold can only be imported under specific conditions like Special Import License or baggage was unwarranted. Import under the Pass Book Scheme was considered a valid channel, and the appellant was directed to utilize the credit available in their pass book to pay the duty on the imported gold. Conclusively, the Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The appellant was instructed to debit the duty amount on the imported gold from the credit available in their pass book, based on a rate of 50% of the value of gold as basic customs duty, along with other applicable customs duties.
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