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2018 (5) TMI 1248 - AT - CustomsExemption from SAD - N/N. 53/2003-Cus. - Duty Free Credit Entitlement scheme - contention of the Department is that during the period of import i.e. from 01.03.2006 to 18.12.2006 the SAD was not exempted under N/N. 53/2003-Cus. therefore debited in respect of SAD (Special Additional Duty of Customs) made by the appellant is incorrect to that extent the appellant is liable to pay the Customs duty. Held that: - there is alternative exemption notification in respect of special additional duty leviable under Section 3(5) of Customs Tariff Act, 1975 under N/N. 20/2006-Cus. As per said notification all goods are exempted from payment of special additional duty, if the goods are exempted from payment of whole of Customs duty and whole of additional duty leviable under Section 3(1) of Customs Tariff Act, 1975 - In the present case the goods imported are admittedly exempted from whole of the Customs duty and additional duty under Section 3(1) of the said Act, therefore special additional duty is exempted under N/N. 20/2006-Cus. From the judgment Gujarat Ambuja Exports Ltd. Vs. Union of India [2013 (6) TMI 536 - GUJARAT HIGH COURT], it can be seen that though in the case of DEPB scheme exemption is provided by debiting the duty in DEPB scrip, it is considered as exempted. The similar procedure is available in the Notification No. 53/2003-Cus, therefore the ratio is squarely covered in the present case for the purpose under Notification No. 20/2006-Cus. Accordingly the condition of the Notification No. 20/2006-Cus is fully complied with, therefore the special additional duty cannot be demanded from the appellant. Since we decide the exemption of special additional duty leviable under Section 3(5) of Customs Tariff Act only on the basis of N/N. 20/2006-Cus. We need not to address the exemption of such duty under N/N. 53/2003-Cus. - appeal allowed - decided in favor of appellant.
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