Zero Duty Export Promotion Capital Goods Benefit available in absence of simultaneous availment under SHIS

Commissioner of Customs Vs Danieli India Ltd (CESTAT Chennai)

CESTAT Chennai held that benefit of exemption Notification no. 102/2009-Cus dated 11.09.2009 for capital goods imported under Zero Duty Export Promotion Capital Goods (EPCG) scheme available as there is no simultaneous availment of benefit under Status Holder Incentive Scheme (SHIS).

Facts- M/s.Danieli India Ltd., Kolkatta, the respondent herein, is engaged in manufacturing various equipments used in steel plants. Post investigation, a show cause notice was issued alleging that the respondent has wrongly availed the benefit of exemption Notification no. 102/2009-Cus dated 11.09.2009 in respect of the capital goods imported by them under the Zero Duty Export Promotion Capital Goods (EPCG) Scheme in contravention of the condition 2 (4) of the said Notification no. 102/2009-Cus dated 11.09.2009

After due process of law, the original authority dropped the proceedings proposed in the SCN. Aggrieved, the department is now before the Tribunal.

Conclusion- Held that in the present case, the respondent has not availed any Zero Duty EPCG Authorization for the period 2010-11. The Zero Duty EPCG Authorization is for the period 2011-12. Thus, there is no violation of the conditions.

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