2015 (3) TMI 377 - AT - Customs

Denial of the benefit of Notification No. 20/99 dated 28/02/1999 - Failure to obtain end-use certificate for use/consumption of steel melting scrap in the manner prescribed in the said Notification from the jurisdictional Assistant Commissioner - Held that - There is no doubt that the eligibility to duty exemption under Notification 20/99-Cus will depend upon submission of end-use certificate issued by the jurisdictional Assistant Commissioner. The jurisdictional Assistant Commissioner has rejected the application of the appellant and the matter has been taken in appeal and is presently pending before the Zonal Bench at Chennai. Inasmuch as eligibility to customs duty exemption under Notification 20/99 is dependent upon the eligibility to end-use certificate, it would be appropriate if both these appeals are heard by the same bench. - Matter referred to President CESTAT.

Summary

Issues:
- Duty demands confirmation and penalty imposition for failure to obtain end-use certificate
- Appeal for transfer and decision by Bombay or Chennai Bench
- Eligibility for customs duty exemption under Notification 20/99 based on end-use certificate
- Request for both appeals to be heard together by the same bench
- Clarification on jurisdiction and transfer of cases between Zonal Benches

Analysis:
1. Duty Demands and Penalty: The appeals challenge Order-in-Originals confirming duty demands of significant amounts and imposing penalties on the appellant for not obtaining an end-use certificate as required by Notification No. 20/99. The Commissioner upheld these demands, leading to the appellant's appeal.

2. Transfer of Appeal: The appellant sought transfer and joint decision of the appeal by either the Bombay or Chennai Bench. They had previously applied for an end-use certificate, which was rejected by the jurisdictional Assistant Commissioner, leading to a series of appeals and transfers to different benches, emphasizing the importance of the end-use certificate for customs duty exemption eligibility.

3. Customs Duty Exemption Eligibility: The eligibility for customs duty exemption under Notification 20/99 hinges on the submission of an end-use certificate from the Assistant Commissioner. Given the rejection of the appellant's application and the pending appeal on the matter, it was deemed appropriate to have both the issues of end-use certificate and customs duty exemption heard together by the same bench for consistency and coherence in decision-making.

4. Jurisdiction and Transfer Clarification: The Additional Commissioner for Revenue highlighted the jurisdictional protocol outlined in CESTAT Public Notice No. 2/2005, stating that cases within Zonal Benches should be filed and heard accordingly, suggesting that transfer may not be necessary. However, considering the interdependence of the end-use certificate issue and customs duty exemption eligibility, the Tribunal directed the matter to be placed before the President for the constitution of a bench in either Mumbai or Chennai to hear all related appeals together for a comprehensive and cohesive decision-making process.