2002 (9) TMI 232 - AT - Customs

Summary

Issues:
1. Import of goods under a duty exemption notification
2. Allegation of misclassification of imported goods
3. Rescinding of the notification affecting exemption availability
4. Delay in investigation and adjudication leading to loss for the appellant

Analysis:
1. The appellant imported consignments of D.L. Glutamic acid monosodium in 1995 and sought duty exemption under Notification 17/95. Customs received a communication questioning the goods' eligibility for exemption, leading to a delay in clearance for home consumption.

2. A notice was issued proposing denial of the exemption, alleging the goods were misclassified as monosodium glutamate instead of D.L. Glutamic acid monosodium. The Assistant Commissioner allowed provisional clearance on payment of duty, which the appellant did not opt for.

3. The Commissioner adjudicated in 1997 that the imported goods were indeed D.L. Glutamic acid monosodium eligible for exemption. However, the notification was rescinded in 1996, impacting the availability of the exemption for ex bond clearance, prompting the appeal.

4. The Tribunal noted the appellant incurring warehouse rent due to the delay in the investigation and adjudication process. Citing legal precedents, the Tribunal emphasized that authorities cannot benefit from their own delays, leading to the discharge of the bank guarantee and bond, and allowing the appeal in favor of the appellant.