2020 (2) TMI 1086 - AT - Customs

Demand of Additional duty of Customs (High Speed Diesel Oil) - section 116 of the Finance Act, 1999 with effect from 1.3.1999 - HELD THAT - The issue is squarely covered by the decision of tribunal in case of SJLT. TEXTILES (P) LTD. VERSUS COMMISSIONER OF CUSTOMS, COCHIN 2014 (1) TMI 1523 - CESTAT BANGALORE wherein it has been held that notification no. 43/2002 does not grant exemption from levy under section 116 of the Finance Act, 1999. Appeal dismissed.

Summary

Issues:
1. Demand of Additional duty of Customs (High Speed Diesel Oil) under section 116 of the Finance Act, 1999.
2. Applicability of Notification 43/2002-Cus dated 19.04.02 for exemption from Additional Duty of Customs.

Analysis:

Issue 1:
The appeal filed by M/s. Flexi Tuff International Ltd. pertained to the demand of Additional duty of Customs (High Speed Diesel Oil) under section 116 of the Finance Act, 1999. The duty was demanded through a Show Cause Notice dated 07.10.2004 and confirmed via Order-In-Original dated 17.3.2010, which was upheld by the Commissioner (Appeals) Order No. 36/2011/COMMR-A-/KDL. Despite numerous opportunities for hearings, the appellant did not appear, leading to the decision being made based on the grounds of appeal.

Issue 2:
The dispute revolved around the appellants' claim of exemption from Additional Duty of Customs (High Speed Diesel Oil) under section 116 of the Finance Act, 1999, based on Notification 43/2002-Cus dated 19.04.02. The appellants argued that this notification, which exempts material imported into India against the Advance license issued in terms of Para 4.1.1 of EXIM policy, should also exempt them from the said duty. However, it was pointed out by the Authorized Representative that a previous tribunal decision in the case of S J L T Textiles P Ltd Vs. CC, 2013 (297) ELT 144 (Tri-Bang) had ruled that Notification No. 43/2002 does not grant exemption from levy under section 116 of the Finance Act, 1999.

The tribunal found that the issue was squarely covered by the decision of a coordinate bench in the case of S J L T Textiles P Ltd. The notification in question did not grant exemption from the payment of additional duty of Customs leviable under the Finance Act, 1999. As per the strict construction of exemption notifications, the grounds raised by the appellants were deemed untenable, leading to the dismissal of the appeal based on the precedent set by the earlier decision.

In conclusion, the appeal was dismissed based on the precedent established by the earlier tribunal decision, emphasizing that the notification in question did not provide exemption from the payment of additional duty of Customs under the Finance Act, 1999. The judgment was pronounced in the open court on 24.01.2020.