No Denial of CVD Exemption under Excise Notification based on Impossible Condition: CESTAT [Read Order]
![No Denial of CVD Exemption under Excise Notification based on Impossible Condition: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/04/Denial-of-CVD-Exemption-CVD-Exemption-Excise-CESTAT-Customs-Excise-Service-Tax-Taxscan.jpg "No Denial of CVD Exemption under Excise Notification based on Impossible Condition: CESTAT [Read Order]")
In a recent case, the Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)has held that exemption of Countervailing Duties (CVD) under excise notification cannot be denied when practically not possible to satisfy the prescribed...
In a recent case, the Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)has held that exemption of Countervailing Duties (CVD) under excise notification cannot be denied when practically not possible to satisfy the prescribed condition.
The respondent, Mr Kailash Kumar Kishorpuria had imported silk fabrics vide 2 Bills of Entry and claimed the benefit of CVD @ 8% under Notification No.30/2004-CE dated 09.07.2004. The original authority vide orders of assessment dated 24.02.2010 and 25.02.2010 denied the benefit of Notification No.30/2004-CE on the imported goods.
On appeal, the Commissioner (Appeals) set aside the order passed by the original authority and held that the respondent is eligible for the benefit of notification.
The Revenue contended that the respondent is not eligible for the benefit of notification as they have not fulfilled the condition of the notification. There is a condition attached to the notification that the benefit would not be available if cenvat credit has been availed on the duty paid on inputs. In the present case, the respondent has not paid any duty on the inputs and has not availed cenvat credit.
It was argued that when the inputs have not suffered duty, the benefit of Notification No.30/2004-C.Ex. cannot be availed by the respondent. It was evident that the notification intended to safeguard the interest of the manufacturers in India. During the relevant period, no duty was payable on silk yarn either indigenously procured or imported.
The condition in the notification cannot be said to be satisfied when the inputs have not suffered duty. It was observed by the CESTAT that the Apex Court held that the benefit of notification cannot be denied if the condition such that it is practically impossible to satisfy the condition.
After Considering Various Judgements, the two-member Coram comprising of Ms Sulekha Beevi C.S (Judicial) and Shri M. Ajit Kumar (Technical) upheld the order passed by the Commissioner (Appeals and dismissed the appeal filed by the department.
To Read the full text of the Order CLICK HERE
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