Suryadev Alloys And Power Pvt. Ltd. Vs Principal Commissioner of Customs (Audit) (CESTAT Chennai)
The CESTAT Chennai allowed the appeal filed by M/s. Suryadev Alloys & Power (P) Ltd. against Order-in-Original No. 103043 of 2023 dated 11.09.2023, which had confirmed customs duty in the form of IGST, interest, redemption fine and penalty for alleged violation of the pre-import condition under the Advance Authorization Scheme during 13.10.2017 to 09.01.2019. The appellant had imported non-alloy steel melting scrap against exports of steel billets under five Advance Authorizations. The appellant had made exports before importing the inputs as replenishment and claimed exemption under Notification No. 18/2015-Customs, dated 01.04.2015 Notification No. 79/2017-Cus dated 13.10.2017 amended the exemption by introducing the pre-import condition for IGST exemption under Sections 3(7) and 3(9) of the Customs Tariff Act, 1975.
The appellant submitted that four Advance Authorizations had been issued before 13.10.2017, making compliance with the subsequently introduced pre-import condition impossible. In relation to the fifth authorization, the appellant also relied on the circumstances of its exports and imports. The jurisdictional DGFT had subsequently issued redemption letters for all five Advance Authorizations, and Customs had closed the corresponding bonds. The appellant contended that its export obligations had therefore been discharged. It also disputed invocation of the extended limitation period under Section 28(4) of the Customs Act, 1962, challenged the levy of interest in the absence of a machinery provision under Section 3(12) of the Customs Tariff Act, 1975 during the relevant period, and pleaded revenue neutrality because IGST paid could be claimed as input tax credit.
