The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dismissed the appeal filed by the revenue on the ground of imported capital goods under the zero duty Export Promotion Capital Goods (EPCG) scheme was eligible for Exemption.
Danieli India Ltd, the respondent assessee was engaged in manufacturing various equipment used in steel plants and had availed the benefit of exemption notification in respect of the capital goods imported by them under the Zero Duty Export Promotion Capital Goods (EPCG) Scheme.
The revenue appealed against the order passed by the Commissioner for allowing the claim of exemption claimed by the assessee.
Anandalakshmi Ganeshram, the counsel for the department contended that the exemption notification was not admissible to an importer who had been issued duty credit scrips under the Status Holder Incentive Scheme as well as the Zero Duty EPCG Authorisation Scheme and the benefit of the exemption under notification would be available only after surrendering of the SHIS scrips.
Further submitted that the assessee has not refunded the unutilized amount of the SHIS scrip issued to them before obtaining zero duty EPCG authorization and the assessee was not eligible for getting the benefit of exemption under exemption notification.
Pulak Saha, the counsel for the assessee contended that the assessee had not availed simultaneous benefit and there had been no contravention of condition 2 (4) of the exemption notification.
The bench observed that the assessee had not availed any Zero Duty EPCG Authorization and thus there was no violation of the conditions explained under the exemption notification.
The two-member bench comprising Sulekha Beevi C.S (Judicial) and Vasa Seshagiri Rao (Technical) held that the appeal filed by the department was without merits and dismissed.
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