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2014 (8) TMI 315 - AT - CustomsSAD - Re-import of goods cleared outside India - Whether goods which have been re-imported and cleared availing the benefit of Notification No.94/96-Cus have to be held as having suffered additional customs duty leviable under Section 3 of Central Tariff Act and therefore are leviable to SAD leviable under Section 3A of Customs Tariff Act or not - Held that:- It is evident from the body of the Notification No.94/96-Cus that though exemption is issued under Notification No.25 of the Customs Act, 1962 but it exempts Basic Customs Duty under first schedule to the Customs Tariff Act, Additional Duty (CVD) leviable under Section 3 of the Customs Tariff Act and Special Duty of Customs under Section 68(1) of the Finance Act, 1996. It will not be correct, as held by first appellate authority that duty exempted under Notification No.94/96-Cus represents only Basic Customs Duty but will represent both the Basic Customs Duty and Additional Duty of Customs (CVD). What is required to be paid, as per Sr.No.2A of the Table to Notification No.94/96-Cus will also represent CVD though the measure would be equivalent to the Central Excise duty leviable on the re-imported goods at the time of import. The additional duty of Customs (CVD) is thus not wholly exempted under Notification No.94/96-Cus. Revenue neutrality - Held that:- Even if SAD is paid by the appellant, the same will be available as refund to the appellant if the imported goods are sold as such on payment of sales tax. In the event of the re-imported goods are brought to the appellant’s premises, then also CENVAT Credit is admissible. The demand of duty upon the appellant is thus not sustainable on revenue neutrality - Decided in favour of assessee.
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