By TIOL News Service

KOLKATA, OCT 21, 2015: THE Appellants are manufacturer and exporter of electrodes and had imported "Electrode Grade Calcined Petroleum Coke" by filing a Bill of Entry in November 2007 &claiming classification under CSH No.2713 11 12 and benefit of exemption Notification No.20/2006-Cus dated 1st March, 2006, from payment of additional duty of Customs (CVD).

The exemption entry reads -

TABLE

The benefit was allowed. Subsequently, in July 2008 the importer was issued a demand notice alleging wrong availment of Notification No.20/2006-Cus and demanding duty of Rs.6,76,533/-. Inasmuch as it is the allegation that the said exemption is available only to "coke" derived from "coal" & not derived from "petroleum".

The Commissioner confirmed the demand and imposed equivalent penalty.

The importer is before the CESTAT.

After hearing both sides, the Bench extracted the meaning of ‘Coke' & ‘Petroleum coke' given in McGraw-Hill, Dictionary of Science and Engineering& the Material's Handbook respectively, and observed -

+ A plain reading of the Notification and the meaning of coke and petroleum coke, it is clear that under the said Notification, petroleum crude, kerosene, LPG, petrol, diesel coal, coke etc., have been allowed the benefit. Thus, reading in the context, the coke derived from coal only, cannot be read into the said Notification, while allowing exemption to the coke derived from other sources, like petroleum.

+ In absence of any such restriction, in our opinion, the benefit of the exemption Notification No.20/2006-Cus dated 01.03.2006 as amended, is available to "Electrode Grade Calcined Petroleum Coke" imported by the Appellant.

+ We also find that the similar goods were allowed to be exempted from payment of additional duty of excise under Section 3(5) of CTA, 1975 at the Nhava Seva Customs House and no contrary fact is produced before us by the Revenue.

+ We find from the record that the Appellant had clearly stated the description of the goods in the Bill of Entry "Electrode Grade Calcined Petroleum Coke", which has been assessed to duty after allowing the benefit of exemption Notification. As such, in view of judgement of the Hon'ble Supreme Court in  Northern Plastic Ltd. case - 2002-TIOL-604-SC-CUS, there cannot be an allegation of mis-declaration of imported goods or suppression of facts in claiming the benefit of exemption Notification.

The order was set aside and the appeal was allowed with consequential relief.

(See 2015-TIOL-2258-CESTAT-KOL)