Circular No. 12/97-Cus.
dated 12/5/97
F. No. 455/18/95- Cus. V
Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject : Ad-Hoc Exemption Orders Issued Under Section 25 (2) of the Customs Act,1962-problem of retrospectivity-regarding.
Kind attention is invited to Ministry’s letter F.No. 384/945/85-AU dated 24.7.87, copy of which is enclosed for reference, wherein the opinion of the them Attorney General, on the above mentioned subject, was circulated to All Commissioners of Customs and Central Excise, for appropriate action.
2. It has, of late, been observed that on occasions, the benefit of duty-free clearance to goods, which have been exempted by way of issue of an Ad-hoc Exemption Order, Under Section 25(2) of the Customs Act, 1962, is denied to importers on the grounds that the order was issued subsequent to the arrival / filing of Bill of Entry / clearance of the goods in question, from Customs.
3. The above quoted opinion to the Attorney General of India, dated 30.6.87, is once again re-produced below for bringing to your notice and for necessary appropriate action, so that in future, benefit of Ad-hoc Exemption Order has been issued subsequent to the arrival / clearance of the goods from Customs.
4. The opinion of the Attorney General of India on the scope of Section 25(2) of the Customs Act, 1962, excerpted below :
“If the requirements of Section 25(2) are satisfied, I am of the view that an exemption can be passed Under Section 25(2) even after the goods have been imported. An exemption can also be granted even after the duty has been paid in which event, the duty paid has to be refunded.”
5. All Commissioners are requested to bring the contents of this circular of the attention of concerned officers and ensure that benefit of Ad-hoc Exemption Order are not denied on the grounds mentioned in para 2 above of this letter.
