Membrane System of Imported Goods are Eligible for Avail Benefits of Exemption of Custom Duty Under Exemption Notification: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the membrane system of imported goods is eligible for availing the benefits of exemption of customs duty under exemption notification. 

RBR Knit Process Pvt. Ltd, the respondent-assessee registered under Project Import Scheme and deposited an amount being 2% of the project value for clearance of goods without duty under the scheme. 

The revenue appealed against the order passed by the Commissioner (Appeals) for quashing the order of original authority for demanding duty along with interest. 

Ananda Lakshmi Ganeshram, the counsel for the revenue contended that the imported goods are only Membranes and not Reverse Osmosis Membrane Filtration Systems and only the Parts / Components of the Water Supply Projects are eligible for the benefit of the notification. 

Further submitted that the assessee was not eligible to reverse osmosis membrane by itself does not constitute water purification equipment and thus the assessee importer was not eligible for the benefit of the notification. 

Hari Radhakrishnan, the counsel for the assessee contended that the imported goods are membrane systems and the reverse osmosis membrane filtrations system would come within the meaning of ‘plant’ used in the definition of water supply project. 

The Bench observed that goods imported are membrane systems and are eligible for the exemption under notification and the decision made by the Commissioner was as per the law. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) upheld the decision made by the Commissioner while dismissing the appeal filed by the revenue. 

To Read the full text of the Order CLICK HERE

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