Commissioner Of Customs, Tuticorin vs M/S. Dcw Ltd
- CitationAppeal No.17/2009
Ratio decidendi
The rule this decision rests on
Where an import is exempted from basic customs duty on condition that the value is debited to a DEPB passbook, the goods are not thereby rendered duty-free, but education cess is not leviable on the notional basic duty in the absence of any statutory basis for its calculation, so no education cess is realisable in that situation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No.17/2009, dated 25.02.2009 passed by the Commissioner of Customs & Central Excise (Appeals), Tiruchirapalli]
COMMISSIONER OF CUSTOMS, TUTICORIN APPELLANT
Versus
M/s. DCW Ltd. RESPONDENT
Appearance:
For the Appellant Ms. Indira Sisupal, Adv.
For the Respondent Shri C. Seethapathy, AC (AR)
CORAM:
Honble Shri D.N. Panda, Judicial Member
Date of hearing/decision 13-03-2015
FINAL ORDER NO. 40480 / 2015
Revenue says that the exemption granted subject to debit to the DEPB passbook, does not mean that the goods imported is duty-free. Once such import is not duty-free, that is liable to duty. Even though basic duty is exempted, cess is payable on the determinable basic duty. Learned Commissioner (Appeals) is in error to grant relief to the respondent holding no education cess is payable.
2. Learned counsel on the other hand submits that the Honble Madras high Court in the case of the appellant - Commissioner of Customs, Tuticorin Vs DCW Ltd., reported in 2014 (306) E.L.T. 398
(Mad.) held that if the exemption is granted subject to debiting amount in the DEPB, in absence of any basis for calculation of Education Cess, that shall not be realisable. This was also the view of the Honble High Court of Gujarat in the case of Commissioner of Customs Vs Pasupati Acrylon Ltd. reported in 2013 (296) E.L.T.182 (Guj.). The judgment of the Honble High Court of Gujarat has been upheld by apex court dismissing the appeal of Revenue in the case of Commissioner Vs Pasupati Acrylon Ltd. reported in 2013 (297) E.L.T.A102 (S.C.).
3. In view of the above, Revenue appeal is dismissed.
4. As the appeal of the Revenue is dismissed, the cross objection stands disposed. (Dictated and pronounced in open court)
(D.N. PANDA) JUDICIAL MEMBER
ksr 13-03-2015
DRAFT Remarks
I II III
Date of dictation 13.03.2015
Draft Order - Date of typing
Fair Order Typing .03.2015
Date of number and date of dispatch
4 C/00177/2009 and C/CO/00047/2009
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