2022 (11) TMI 1097 - AT - Customs
Exemption from Establishment Charges as per Para 5 (b) and 5(C) of Circular No. 16/2013-Customs dated 10.04.2013 - period from 2010-11 to May 2014 - respondents were appointed as ‘Custodian’ by the Commissioner of Customs, Ahmedabad - landing places - whether the Respondents are required to pay establishment charges? - HELD THAT:- On going through the regulation of HCCAR, 2009, it is found from said regulations that Customs Cargo Service providers, which were hitherto termed and notified as ‘custodians’ before issuing of Notification No. 26/2009-Cus (N.T.) dated 17.03.2009 for notifying the HCCAR, 2009, were required to pay the cost of the officers posted there by the Commissioner of Customs ‘ on cost recovery charges’ unless specifically exempted by an order of the Ministry of Finance, Government of India.
Circular No. 13/2009-CUS dated 23.03.2009 issued by the Central Board of Excise and Customs, Ministry of Finance Government of India, in clear terms clarifies that payment of cost recovery charges in respect of ports and airport has been exempted for three categories of custodians specified in Circular No. 27/2004- Cus. dated 06.04.2004 - thus, government has exempted the Custodians notified before 26.06.2002 from the payment of ‘cost recovery charges’.Therefore, the Commissioner (Appeals) is legally correct in extending the benefit of waiver of establishment charges in this matter.
There was no requirement of any application for claiming exemption in this matter. In the present matter there is dispute that all the four respondents have been appointed/ notified as ‘Custodians’ well before the 26.06.2002 and as per circular No. 27/2004- Cus dated 06.04.2004 and 13/2009-Cus. dated 23.03.2009, recovery of establishment charges/ cost recovery charges stands exempted/waived.
Appeal of Revenue dismissed.