The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), observed that no claim can be made for benefit of Special Additional Duty ( SAD ) exemption notification on import of parts of articles of jewellery.
The appellant filed Bills of Entry for clearance of gold/silver findings and claimed exemption from payment of Counter Vailing Duty (CVD) under the CVD exemption notification, as amended from time to time as also exemption from payment of SAD under the SAD exemption notification.
The Bills of Entry were appraised and the appellant discharged the customs duty, but subsequently it was observed by the officers that the appellant was not entitled to avail the benefit of CVD exemption notification or the SAD exemption notification. Accordingly, a show cause notice was issued for recovery of CVD and SAD with interest and penalty. The adjudicating authority confirmed the demand and imposed penalty.
The Commissioner (Appeals) held that the appellant was not entitled to avail the benefit of the CVD exemption notification. The Commissioner (Appeals) also held that the appellant was not entitled to avail the benefit of the SAD exemption notification.
Chapter 71 contained in section XIV to the Customs Tariff Act deals with natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin.
A perusal of the CVD exemption notification also shows that entry no. 199 of Chapter heading 7113 contains (I) articles of jewellery and (II) articles of silver jewellery. It does not exempt „parts of articles of jewellery‟. When this entry is compared to entry no. 199, as amended by notification dated 26.07.2016, it is seen that „parts of articles of jewellery‟ have been included.
The Tribunal of Justice Dilip Gupta, President and Hemambika R Priya, Technical Member observed that “The Commissioner (Appeals) has recorded a finding that since they are different articles, an assessee cannot claim the benefit of SAD exemption notification on import of parts of articles of jewellery. The finding recorded by the Additional Commissioner and the Commissioner (Appeals), therefore, does not suffer from any legality.”
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