By TIOL News Service

MUMBAI, SEPT 19, 2016: ALL India Tennis Association, New Delhi imported a consignment of Pulse Sprint Flat Bed Treadmill, Pulse Ascent Elevated Treadmill, Pursuit Cycle and Pace Stepper and claimed benefit of Notfn. No. 146/94-Cus. dt.13.07.1994; Notfn. No. 16/2000 dt.1.3.2000 Sr. No. 331 (Condition No. 76).

It was the contention of the department that these imported items do not fall under the exemption Entry No. 331 as these items are General Physical Exercise equipments used in gymnasium falling under CTH 9506.

On the objection of the department,the importers paid duty of Rs.3,53,419/- under protest and thereafter claimed refund of the same.

The adjudicating authority rejected the refund claim on the ground that the imported goods being general physical exercise equipment are not used in a National or International Championship or Competition to be held in India or abroad and hence the exemption claimed is not available.

Having failed before the Commissioner (Appeals), the appellant is before the CESTAT.

None appeared on behalf of the appellant.

The AR reiterated the stand taken by the department.

Notification No. 16/2000-Cus.exempts all goods of Chapter 94 which is required for games and sports, subject to compliance of condition No. 76 of the Notification that reads:

"If certified by the apex body in relation to the concerned game or sport (the highest organization, other than Government, by which the game or sport is controlled or regulated), that the requisites for games and sports are required to be used in a national or international championship or competition to be held in India or abroad."

The Bench, after noting the above, observed -

++ It is provided that the exemption is available on the condition that apex body certifies that the requisites for games and sports are required to be used in a national or international championship or competition to be held in India or abroad.

++ From the certificate (provided by appellant), it is clear that the Sports Authority of India has certified the specific imported goods that the said equipments are used for national or international tournaments.

++ As per the Condition 76 only certification from the apex body is required, so long that condition is complied with exemption is available to the imported goods. Moreover, for the purpose of national or international tournaments, the fitness of the player is the primary criteria for preparing to face the competition of national or international tournaments. Therefore, it cannot be said that these fitness equipments are not used by the appellant for national or international tournaments.

++ We are, therefore, of the considered view that on the basis of certificate dt. 14.6.2000 issued by Sport Authority of India addressed to the Assistant Commissioner of Customs, Bombay in respect of equipments imported by the appellant, exemption notification is clearly admissible to the appellant.

Holding that the department has no jurisdiction to question the certificate issued by Sports Authority of India, the impugned order was set aside and the appeal was allowed with consequential relief.

(See 2016-TIOL-2443-CESTAT-MUM)