1999 (4) TMI 172 - AT - Customs

Summary

Issues:
Whether HDPE granules imported by the appellants would be exempt from special additional duty under Notification No. 56/98, dated 1-8-1998.

Analysis:
The judgment by the Appellate Tribunal CEGAT, Madras dealt with the limited issue of whether HDPE granules imported by the appellants would be exempt from special additional duty under Notification No. 56/98. The appellants had purchased the granules on Highseas sale basis and sought to clear them under a Customs Bill of Entry. The primary contention was whether the granules, already assessed for exemption from basic customs duty and additional customs duty under Notification No. 104/95, would also be exempt from special additional duty under Notification No. 56/98. The Tribunal considered the arguments presented by both parties.

The learned Senior Counsel for the appellants argued that since the Customs House had already granted duty exemption under Notification No. 104/95, the imported consignments should also be exempt from the special additional duty under Notification No. 56/98. He contended that each clause in the notifications should be considered separately, and fulfilling the conditions of Clause 13 should warrant the duty exemption. On the other hand, the learned JDR presented the opposing view.

Upon careful consideration of the submissions and records, the Tribunal observed that the Order-in-Appeal had erroneously linked Clause 12 of Notification No. 56/98 with Clause 13, which the appellants had invoked for duty exemption. The Tribunal emphasized that the notification aimed to provide exemption from special additional duty based on the table within the notification. The table contained various serial numbers, each addressing different goods and their respective duties. It was noted that each serial number stood independently, and there was no requirement to read clauses in conjunction. Notably, Serial Number 13 granted full exemption from special additional duty for goods also exempt under Notification No. 104/95, aligning with the appellants' case.

Further analysis revealed that the goods in question had been assessed for full exemption from both basic customs duty and additional duty of customs, meeting the criteria for duty exemption under Serial Number 3 of the notification as well. Consequently, the Tribunal concluded that the duty exemption claimed by the appellants was valid under the law. As a result, the Order-in-Appeal was set aside, and the appeals were allowed, providing consequential relief as per the law.