Vardhman Textiles Ltd. Vs Commissioner of Customs (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, dismissed an appeal challenging the denial of reassessment, cancellation, and substitution of five Bills of Entry (B/Es) filed for import of raw cotton and upheld the denial of exemption under Notification No.21/2022–Cus. The appellant had filed five self-assessed B/Es between April 5 and April 13, 2022, claiming exemption under an earlier notification. On April 13, 2022, a new exemption notification was issued granting nil duty on cotton imports with effect from April 14, 2022. The appellant subsequently requested reassessment and substitution of the B/Es to avail the benefit of the new notification, but these requests were rejected by customs authorities and upheld on appeal.
The Tribunal identified the core issue as whether the appellant could claim the benefit of a notification that came into effect after the filing and assessment of the B/Es. The appellant argued that the relevant date for determining duty should be the date of clearance, as goods remained “imported goods” until out-of-charge under Section 47, and relied on judicial precedents to support this interpretation. It was also argued that the assessee had the option to choose a more beneficial exemption.
