By TIOL News Service

AHMEDABAD, SEPT 26, 2014: THE appellant being an EOU, had imported and procured locally inputs for manufacturing of goods for export, by availing benefit of Notification No. 22/2003-CE and 52/2003-Cus. There is a proviso in the said notifications, which requires an assessee to discharge or return back the amounts of customs duty forgone by the department if the goods are cleared in DTA, without payment of duty. In the cases in hand, the appellant has availed benefit of exemption Notification No. 06/2006-CE.

The appellant has placed reliance on the decision of the Tribunal in the case of M/s. Synergies-Dooray Automative Limited & Ors 2008-TIOL-682-CESTAT-BANG, wherein the very same notifications were interpreted and it was held that no duty can be demanded on the imported inputs, if there is DTA clearance claiming exemption. Revenue relied on another judgment in the case of Indira Printers - 2010-TIOL-1908-CESTAT-DEL, wherein diagonally opposite view has been taken by the Tribunal.

On going through both the judgements, the Tribunal opined that on the same issue, two different views are expressed by the benches of the Tribunal, therefore the matter needs to be referred to the President to consider whether a Larger Bench needs to be constituted to resolve the issue.

Since the issue needs to be resolved by a Larger Bench, the Tribunal granted complete waiver of pre deposit.

(See 2014-TIOL-1850-CESTAT-AHM)