Conditions for claiming benefit of exemption notification no. 52/2003 are to be strictly interpreted

Pelican Grani Marmo Pvt Ltd Vs Additional Commissioner (CESTAT Delhi)

CESTAT Delhi held that benefit of the exemption Notification No. 52/2003 is available subject to some conditions, the same is to be strictly interpreted.

Facts- M/s Pelican Grani Marmo Pvt Ltd filed two appeals to assail the order passed by the Commissioner (Appeals), Central Excise and Central Goods and Service Tax, whereby the appeal filed by the appellant was partly allowed two appeals filed the appellant by setting aside the penalty imposed on it under Section 117 of the Customs Act, 1962 and reducing the penalties imposed under section 112(a) and rejected the remaining part of the appeal.

As a 100% EOU, the appellant is entitled to import goods duty free as per Notification No. 52/2003-CUS as amended from time to time. The exemption notification is subject to some conditions including a condition that the appellant executes a bond with a customs authority binding itself to pay on demand an amount equal to duty leviable on the goods and interest at a rate specified by the Notification issued under section 28AB in certain situations.

It appeared to the revenue that the appellant had consumed steel grits/ steel blade at a rate higher than the Standard Input Output Norms. As the appellant had consumed steel grits/ steel blade in excess of the norms, it appeared to the Revenue that the goods which were imported were in violation of the exemption notification and, therefore, were liable for confiscation under section 111(o) of the Act. Accordingly, it was also felt that the appellant was liable for penalty under sections 112 and 117 of the Act.

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