2007 (2) TMI 41 - AT - Customs

Target Plus Scheme Alleged that appellant has misconstrued the Target Plus Scheme After considering all the factor authority find the allegation right and dismissed the appeal.

Summary

Issues:
1. Stay of operation of the impugned order filed by the department.
2. Interpretation of provisions regarding debit of duties under the Target Plus Scheme.
3. Determination of the duties to be debited under the Target Plus Scheme - at normal tariff rates or effective rates.
4. Clarification on duty leviable under the Target Plus Scheme and prevention of 'double benefit' to the assessee.

Analysis:
1. The judgment pertains to applications for stay of operation of an impugned order filed by the department. Despite no representation from the respondents, the Tribunal decided to summarily dispose of the appeals after dismissing the stay applications, thereby taking up the appeals for consideration.

2. The case involved the filing of two bills of entry by the respondents under the EPCG Scheme, supported by duty credit certificates under the Target Plus Scheme. The issue revolved around the interpretation of provisions under Notification No. 32/2005-Cus., specifically regarding the debit of duties at normal tariff rates or effective rates under the Target Plus Scheme.

3. The Tribunal analyzed the contentions of both parties regarding the duties to be debited under the Target Plus Scheme. While the respondents argued for debiting duties at the effective rate of 5% as per EPCG Notification, the department contended that duties should be debited at tariff rates. The Tribunal sided with the learned Commissioner (Appeals) in determining that duties to be debited should align with the effective rate prescribed by the Government.

4. The judgment clarified that the duty leviable under the Target Plus Scheme should be the duty equivalent to what is recoverable by the department at the effective rate, preventing any 'double benefit' to the assessee. The Tribunal emphasized that the impugned order did not grant undue advantages to the assessee and highlighted the department's misunderstanding of the Target Plus Scheme. Consequently, the impugned order was sustained, and the appeals filed by the department were dismissed.

This detailed analysis of the judgment covers the issues of stay applications, interpretation of scheme provisions, determination of duties to be debited, and prevention of double benefits, providing a comprehensive understanding of the legal reasoning and decision rendered by the Tribunal.