News Update

German elections - Merkel captures powers for 4th timeFM assigns task to Chief Economic Adviser to finalise booster dose for economyPetrol prices will be reduced shortly, says Petro MinisterHealth Minister thanks PM for approving AIIMS at Bilaspur in HPCII favours further extension of GSTR-1, 2 & 3Thread of Mann Ki Baat integrates every section of society: PMCommerce Minister meets top honchos of Korean MNCsGSTR - 3B for July if submitted but not FILED can be done now: GSTNMumbai Customs organising Half Marathon from Ballard Estate on FridayFM says Chief Economic Adviser Arvind Subramanian’s tenure to be extended till Oct, 2018Income Tax conducts search at premises of S M Krishna's son-in-law who heads CCD GroupPak troops shoot at BSF posts in J&K; 5 injuredGST on 'out and out' transactions (See 'TOG Insight' in due date for submission of GST TRANS-1 is really extended?Illegal income tax raids - Govt advises taxpayers to inspect warrants of searchesCII calls for 1% interest rate cut for job creationAffordable housing - Industry takes up GST issue with GovtIncome Tax - Provisions of Sec 115O do trench on powers of State Legislature to tax agri income but such incidential trenching does not warrant annulment of legislation: Supreme CourtGST - Govt notifies new rates for Duty Credit Scrips, saree falls, roasted grams and many other items + restriction on refund for corduroy fabrics + exemption to khadi fabric, musical instruments and many other items + clarity on issue of cereals etc sold in unit container with brand nameJuly GSTR-3B can now be edited and submitted: GSTNBlockage of Exporters' working capital - Govt exploring link between GSTR-1 & GSTR-3B Govt grants conditional IGST exemption to skimmed milk powder or concentrated milkCBI arrests Mumbai DCIT in alleged Rs 3 Crore corruption caseSC favours creation of portal to attend to home buyers’ grievancesNPPA notifies ceiling price exclusive of GST for 7 drugs including Rifabutin & Hepatitis B ImmunoglobulinCentral Govt notifies Porbandar Wildlife Sanctuary as Eco-sensitive zone; Industries not allowed in its surroundingsYogi Adityanath’s resignation from Lok Sabha notified to be valid from Sept 21, 2017New Drawback Rules, 2017 and AIR of Drawback explainedWealth Tax - Amendment made to Sec 40(3) vide FAs 1983 & 1988 is substantive in nature and that is why it cannot be retrospective: HCI-T- Simply because Writ Court has struck down previous transfer order u/s 127(2)(a), Department is not precluded from initiating fresh procedure: HCGST - Rs 65k Cr TRANS-1 Credit is much less than Rs 1.3 lakh crore as closing balance: GovtDoT finalises guidelines for settlement of claimsNITI, IRF Geneva sign pact in field of Intelligent Transport SystemsCBI nabs former HC Judge in medical admission scamGSTN informs that portal for uploading application seeking advance ruling to be ready only in Jan 2018 - HC questions authority for postponementCBEC makes many amendments in Drawback Rules; excludes many items from list of eligible goods + lists out goods where no drawback is to be determined; New rates to come in force from Oct 1, 2017I-T - Settlement Commission has no authority to review / reopen matters already concluded before it: HC
Cus - Whether 'recognition' is equivalent to 'registration’ - Revenue to cause enquiry from Dept. of Science: CESTAT

By TIOL News Service

MUMBAI, SEPT 14, 2017: IN respect of goods imported and which were meant for in-house research and development, the importer was granted exemption from payment of Basic customs duty in terms of serial No. 248 of Notification No. 21/2002-Cus dated 1.3.2002 as amended.

The Customs notification is extracted below -




84,85 or 90

(1) The following goods for use in pharmaceutical and biotechnology sector, imported for research and development purposes, by an importer registered with the Department of Scientific and Industrial Research, in the Ministry of Science and Technology of the Government of India, namely:-


However, exemption from additional duty of customs was not granted in terms of Notification No.10/1997-CE dated 1.3.1997.

The Central Excise notification entry insofar as that is applicable to the present case is -


Name of the Institutions

Description of the goods







Research institution, other than a hospital

(a) Scientific and technical instruments, apparatus, equipment (including computers);

(1) The institution

(i) is registered with the Government of India in the Department of Scientific and Industrial Research;

The reason for denial of the CE exemption is that the "institution is not registered with the Government of India".

The Appellant submits that it is recognized by the Department of Science and Industrial Research as an in-house research institution and such recognition is equivalent to registration as envisaged by Notification No. 10/1997-CE.

The only controversy in the appeal is to the effect whether "recognition shall amount to registration".

The AR submitted that "recognition" does not amount to "registration" when the decision of Tribunal in the case of Guard Electronics Systems Pvt. Ltd. vs. CCE, Delhi-II - Order no. A/633/2004-NB(C) dated 02.09.2004 is read.

The Bench observed -

"6. The legislature uses specific term in a notification to grant benefit at public cost. The grant of notification depends on such term and the object thereof. That is to be looked into it for the purpose of grant of benefit thereof. Therefore in all fairness, Revenue is directed to cause enquiry from the Department of Science and Industrial Research, Ministry of Science and Technology, to ascertain what does ‘registration" mean in terms of the notification. On the basis of the outcome of the enquiry confronting the result thereof, learned adjudicating authority shall pass appropriate order granting reasonable opportunity of hearing to the appellant. We may mention at this stage that on similar such terminology of "registration" used in Notification No. 21/2002-Cus. dated 1.3.2002, basic customs duty exemption has been granted to the appellant. We do not understand why learned adjudicating authority granted that benefit and denied benefit of exemption from additional duty of customs under Notification No. 10/1997-CE dated 1.3.1997."

The matter is remanded to the adjudicating authority.

(See 2017-TIOL-3334-CESTAT-MUM)


TIOL Tube Latest

GST: एक देश एक कर | गोष्ठी - संस्करण ३