2015 (12) TMI 927 - AT - Customs

Exemption of SAD under Notification No. 20/2006-Cus dated 01.3.2006 - Board Circular F.No. 620A6/2007-Cum.TU dated 11.06.2007 and Standing Order No. 51/2007 dated 04.12.2007 - Held that - issue is no more res-integra in view of the Board Circular F.No. 620A6/2007-Cum.TU dated 11.06.2007 and Standing Order No. 51/2007 dated 04.12.2007 issued by the Chief Commissioner of Customs Mumbai Zone II. - No reason to interfere the order of the Commissioner (Appeals) - Decided against Revenue.

Summary

Issues:
1. Appeal against the order of the Commissioner (Appeals) regarding exemption from Special Additional Duty (SAD) on imported LIquified Petroleum Gas Mixture under Notification No. 20/2006-Cus.

Analysis:
The appeal before the Appellate Tribunal CESTAT Ahmedabad was filed by the Revenue against the order of the Commissioner (Appeals) who had rejected the appeal filed by the Revenue. The case revolved around the import of LIquified Petroleum Gas Mixture in Bulk and the claimed exemption from Special Additional Duty (SAD) under Notification No. 20/2006-Cus dated 01.3.2006. Both parties agreed that the issue was clarified in a Board Circular and a Standing Order issued by the Chief Commissioner of Customs, Mumbai, Zone II. The Board Circular dated 11.06.2007 highlighted the specific tariff entry for LPG under chapter 27 and clarified that all petroleum gases covered under chapter 27 were exempted from the payment of 4% special CVD. The Circular emphasized that the exemption applied to LPG supplied to domestic consumers as well as to other categories, regardless of the specific use. It directed the field formations to finalize all pending assessments of LPG imports. Based on this clarification, the Tribunal found no reason to interfere with the order of the Commissioner (Appeals) and subsequently rejected the appeal filed by the Revenue.

In conclusion, the Tribunal's decision was based on the interpretation of the relevant notification and the clarification provided in the Board Circular regarding the exemption of LPG imports from the payment of special CVD. The case highlighted the importance of specific tariff entries and the scope of exemptions under the customs notifications. The Tribunal's decision aligned with the clarification provided by the Board Circular, emphasizing the eligibility of LPG imports for exemption under the specified notification, irrespective of the category of consumers.