2013 (10) TMI 726 - AT - Customs

Waiver of pre deposit - Benefit of exemption notification - imported into India for the purpose of organizing Common Wealth Games - import by contractors / sub contractors - Held that - while issuing clarification on the said notification, Board vide its circular No. 28/2010-Cus dated 13.8.2010 clarifies that if the importers are on record i.e. contractors/ vendors/ sub-vendors and amended the bill of entry to reflect the organising committee, Common Wealth Games and Prasar Bharti as the case may be as new importer, the benefit of notification would be available to the importer. In any case, it is seen that notification in question was subsequently amended vide notification No. 84/2010 Cus dated 27.8.10, extending the benefit to the vendors/ sub-vendors etc. After the amendment of the notification in question another circular being Circular No. 31/2010 Cus dated 30.8.10 was issued by the Board - Boards intention, as revealed from the beginning was to extend the benefit to the imports made by vendors/ sub-vendors /suppliers, in respect of goods to be used in the Common Wealth Games. This is clear from the earlier circular issued by the Board, subsequent amendment made to the notification and the subsequent notification dated 30.8.10 after the amendment . As such, the amendment of the earlier notification is only clarificatory in case which the benefit of the same would be available to the assessee. As such, at this stage, we are of the view that appellant has prima facie case in its favour so as to allow stay petition unconditionally

Summary

Issues:
1. Dispensing with the condition of pre-deposit of duty and penalties under Section 117 of the Customs Act, 1962.
2. Interpretation of exemption notification No. 13/2010-Cus dated 19.2.10 regarding imports for organizing Common Wealth Games.

Analysis:
The judgment dealt with the application seeking to dispense with the pre-deposit of duty and penalties amounting to Rs.38,48,496/- and Rs.2.50 lakh, respectively, imposed under Section 117 of the Customs Act, 1962. The core issue revolved around the interpretation of exemption notification No. 13/2010-Cus dated 19.2.10, which provided an exemption for goods imported for the purpose of organizing the Common Wealth Games. The appellants claimed the benefit of this notification, but it was contested that they did not fall under the specific category mentioned in the notification, thus not entitled to the exemption.

However, the tribunal noted that a circular issued by the Board clarified that if importers were contractors, vendors, or sub-vendors and amended the bill of entry to reflect the organizing committee of the Games and Prasar Bharti as new importers, they would be eligible for the notification's benefit. Subsequently, the notification was amended to extend the benefit to vendors, sub-vendors, and suppliers involved in the Common Wealth Games. Another circular reiterated this extension, making it clear that suppliers of the organizing committee, Common Wealth Games, Prasar Bharati, or broadcasting right holders would be eligible for the notification's benefit.

The tribunal concluded that the Board's intention, as evidenced by the circulars and amendments, was to extend the benefit to imports made by vendors, sub-vendors, and suppliers for the Common Wealth Games. Therefore, the amendment to the notification was deemed clarificatory, and the appellants were considered to have a prima facie case in their favor. Consequently, the tribunal allowed the stay petition unconditionally, ruling in favor of the appellants based on the interpretation of the exemption notification and the related circulars.