2019 (12) TMI 1379 - AT - Customs

Denial of the benefit of advance authorization - denial of benefit of N/N. 96/2009-Cus. on the ground that the advance authorizations on the basis of which the appellants are claiming the benefit and which were debited at the time of provisional assessment are not valid at the time of finalization of assessment - HELD THAT - The issue has been deliberated upon by the Policy Relaxation Committee where it was held that The Committee noted that the applicant has imported goods within validity of Authorizations. Therefore no further revalidation is required. Imports made within permissible CIF value and within the validity of the Authorization shall be regularized after final assessment by the Custom Authority. Excess imports if any shall be regularized on payment of applicable duty and interest. Moreover if there are delays in finalization of provisional assessment and during this period the validity of an Authorization expires it cannot have any impact on the benefits available under the said Authorizations - In the instant case it is seen that at the time of import the authorizations were valid and had sufficient balance to take care of not only the declared value but also the enhanced value. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of benefit of advance authorization due to expiration of authorization at the time of final assessment.

Analysis:
The appeal was filed against the denial of the benefit of advance authorization issued by the DGFT. The appellant imported Copper Concentrate which was provisionally assessed under Section 18 of the Customs Act, 1962. The appellants claimed the benefit of Notification No. 96/2009-Cus. and advance authorizations issued by DGFT. The provisional value of the imported goods was debited in the advance authorizations. The assessment was finalized later, after the validity of advance authorizations had expired. The appellant argued that the advance authorizations in their possession had sufficient balance to cover even the enhanced value. The revenue sought to deny the benefit on the ground that the advance authorizations were not valid at the time of finalization of assessment.

The Policy Relaxation Committee had given decisions in the dispute, noting that imports made within the validity of authorizations shall be regularized after final assessment by the Custom Authority. The Committee also stated that excess imports, if any, shall be regularized on payment of applicable duty and interest. The appellant contended that since the license was valid at the time of import and had sufficient balance to cover the enhanced value, the benefit of Notification No. 96/2009-Cus. should not be denied.

The Tribunal found that the issue revolved around whether the benefit of Advance Authorizations could be extended when the authorizations had expired at the time of final assessment, despite debits being made in valid authorizations at the time of import. The Tribunal noted that delays in finalization of provisional assessment, leading to the expiration of authorizations, should not impact the benefits available under the authorizations. In this case, the authorizations were valid at the time of import and had sufficient balance to cover both the declared and enhanced values. Consequently, the Tribunal found merit in the appeal, set aside the demand, and allowed the appeal.

The judgment was pronounced in open court on 16-12-2019 by the Tribunal.