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TMI Blog2019 (1) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... s admitted vide order dated 10.10.2017 on the following substantial questions of law:- "1. Whether the Tribunal was correct in holding that Not.No.56/2003-Cus was not substitute of Not.No.43/2002-Cus when the claim made by the appellant itself was that they are otherwise entitled to the benefit of Not.No.43/2002 in respect of the imports made by them, notwithstanding the fact of existence of Not.No.56/2003, which notification was claimed by the appellant only as superfluous and not an substitute of Not.No.43/2002? 2. Whether the Tribunal, while accepting para 4.1.1 of the FTP to cover all advance licences, was correct in treating licenses granted for annual requirement under para 4.1.7A as a separate license for the reason that its obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued to allow duty free import of inputs which are physically incorporated in the export product. In Sub-para (a) of paragraph 4.1.1 which deals with Physical Exports - Advance Licence may be issued for physical exports to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for the import of inputs required for the export product. Paragraph 4.1.2 deals with advance licence issued for duty free import of inputs, as defined in paragraph 4.1.1 subject to actual user condition. Such licences are exempt from payment of basic customs duty, additional customs duty, anti-dumping duty and safeguard duty, if any. Even in paragraph 4.1.2, an exception has been carved out in respect of advance licence for deemed export and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty and anti-dumping duty leviable thereon respectively under Sections 3,8 and 9A of the Customs Tariff Act subject to the conditions stipulated therein. 8. The Central Government issued another notification bearing Notification No. 56/2003- Cus dated 01.04.2003. This notification exempts materials imported into India against an Advance License for Annual Requirement with Actual User Condition in terms of paragraph 4.1.7A of the Export and Import Policy from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, and from the whole of the additional duty leviable thereon under Section 3 of the Customs Tariff Act, subject to the following conditions mentioned in the Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he customs notification for advanced authorization allows exemption from basic customs duty, additional customs duty, anti-dumping duty etc., customs notification No.56/2007 dated 01.04.2003 as amended for Advance Authorization for Annual Requirement needs amendment for allowing exemption from Anti-Duping Duty as well, in line with Foreign Trade Policy Provisions. With the above said observations, the Deputy Director General of Foreign Trade requested the Department of Revenue to consider appropriate amendment in the customs Notification No. 56/2007 about exemption of Anti-dumping duty for Advance Authorization for Annual Requirement also. 10. It is not in dispute that pursuant to the said communication dated 02.09.2008, the Ministry of Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Government of India has not amended the exemption notification. The settled legal principle is that, such exemption notifications are to be interpreted strictly and recently, the Hon'ble Apex Court has held that the interpretation of an exemption notification should lean in favour of the Revenue. Therefore, we do not agree with the contention advanced by the learned counsel appearing for the assessee that the licences issued under paragraph 4.1.7A is in fact the licence in paragraph 4.1.1. This submission is based on the interpretation given by the Deputy Director General of Foreign Trade. In any event, we cannot substitute words in an exemption notification, more particularly, when the exemption notification No.56/2003 specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X
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