The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the availment of exemption from the basic customs duty on the ground of demand proposed in the Show Cause Notice (SCN) on the misconception of fact and law.
GE India Industrial Pvt. Ltd, the respondent-assessee filed various Bills of Entry for the import of Wind Operated Electricity Generator(WOEG) and the assessee availed Basic Custom Duty (BCD)concession towards the import of blades/towers and foundation mounting parts, etc.
The revenue appealed against the order passed by the Commissioner for dropping all the proceedings initiated under show cause notice alleging that the assessee was wrongly availed of exemption of Basic Customs Duty.
Ananda Lakshmi Ganeshram, the counsel for the department contended that the assessee had wrongly sold the parts to the customer which was a complete violation of the condition of the notification and thus the duty demand raised in the show cause notice ought to have been confirmed by the adjudicating authority.
Udit Jain and Akanksha Dikshit, the counsels for the assessee contended that mere presumption of the goods were transported directly to the customer’s premises cannot be said that the assessee had not used the goods for a specified purpose.
Also submitted that there was no violation of the conditions of the notification and both the conditions had been fully satisfied by the assessee and the assessee used the imported blades only for the specified purpose and the allegation that the assessee had sold it and not complied with the condition was factually incorrect.
The Bench observed that the demand proposed in the show cause notice was on misconception of facts and law and the impugned order does not call for any interference.
The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) upheld the order of the Commissioner while dismissing the appeal filed by the revenue.
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