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2024 (3) TMI 244 - AT - CustomsImported Zinc Oxide (99% purity) - whether the imported Zinc Oxide has been used by the appellant in the manufacture of PCFP or not to avail the benefit of exemption Notification No.25/1999-Cus as amended by Notification No.26/2002-Cus ? - HELD THAT - As it is a fact that during the investigation, it was found that the imported Zinc Oxide has been used by the appellant to manufacture PCFP, and some has been further used to manufacture final product which suffered duty and some part has been sold in the open market, therefore, the appellant has established that the imported Zinc Oxide has been used in the manufacture of PCFP. Thus, we hold that the appellant is entitled to claim the benefit of Notification No.25/1999-Cus as amended by Notification No.26/2002-Cus, which exempts Basic Customs Duty on imported Zinc Oxide which has been used in the manufacture of PCFP. Therefore, we hold that that the impugned order does not deserve any merits - Accordingly, the same is set aside. In the result, the appeal is allowed with consequential relief, if any.
Issues involved: Appeal against demand of Customs duty by denying exemption Notification No.25/1999-Cus dated 28.02.1999 at Sl.No.148 of List A.
Summary: Issue 1: Denial of benefit of exemption Notification The appellant, a manufacturer of Ferrites, imported Zinc Oxide for manufacturing Pre-Calcined Ferrite Power (PCFP) under the exemption provided by Notification No.25/1999-Cus. The appellant used the imported Zinc Oxide for manufacturing PCFP, some of which was sold in the open market and some used to manufacture Ferrite Cores for export. A show cause notice was issued alleging that the appellant did not produce PCFP as per their own admission. The appellant contended that they did manufacture PCFP and used it for further manufacturing excisable goods. The jurisdictional authorities confirmed that the imported Zinc Oxide was used by the appellant to manufacture PCFP. The Tribunal held that the appellant is entitled to claim the benefit of the exemption as the imported Zinc Oxide was indeed used in the manufacture of PCFP. Issue 2: Barred by limitation The appellant argued that part of the demand is barred by limitation, therefore the extended period should not be invoked. However, the Tribunal did not find merit in this argument. Conclusion The Tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The appellant was held entitled to the benefit of the exemption Notification No.25/1999-Cus dated 28.02.1999 for using imported Zinc Oxide in the manufacture of PCFP.
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