2007 (7) TMI 500 - AT - Customs

Summary

Issues involved:
The issue involves the rejection of a refund claim by the original authority and the appellate Commissioner regarding the exemption from payment of Basic Customs Duty on imported goods used in the manufacture of defense equipment.

Summary:

Issue 1: Refund Claim Rejection
The appellants imported telescopic cylinders from Germany and cleared them without claiming the benefit of Customs Notification No. 39/96. The goods were supplied to a company for defense equipment manufacturing. The refund claim was rejected due to the late submission of the duty exemption certificate and the form of the certificate not meeting the requirements of the Notification. The appeal is against the rejection of the refund claim.

Details:
The Revenue acknowledged the appellants' eligibility for the duty exemption. The rejection of the claim was solely based on the form of the certificate and the absence of a date on it. The certificate, issued by the Chief General Manager of the company, certified the imports as eligible for duty-free clearance under the Notification and against defense requirements. The certificate was countersigned by a Government official, fulfilling the Notification's requirements. The lower appellate authority objected to the certificate not being issued by the Joint Secretary directly, but the Tribunal found the compliance with the Notification's conditions satisfactory.

Decision:
The Tribunal held that the appellants are entitled to the exemption under Notification No. 39/96-Cus. for the imported goods used in defense equipment manufacturing. The rejection of the refund claim was set aside, and the appeal was allowed.