Case Law Details
ASB International Pvt Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)
CESTAT Mumbai held that customs exemption in terms of notification no. 52/2003-Cus dated 31st March 2003 is duly available to ‘polyethylene (PET) granules’ under input category as used during manufacture of ‘moulds’.
Facts- The present appeal is filed by M/s ASB International against confirmation of demand of ₹ 68,75,451 and demand of ₹ 3,88,600 u/s. 28 of Customs Act, 1962, along with interest thereon u/s. 28AA of Customs Act, 1962, and imposition of penalties of like amount u/s. 114A of Customs Act, 1962. The appellant had been issued with the notices for alleged wrong availment of exemption accorded to ‘inputs’ required for manufacture of goods intended for export even though the impugned ‘polyethylene (PET) granules’ were actually utilised for testing their machines.
Conclusion- Held that ‘polyethylene (PET) granules’ are used during the manufacture of ‘moulds’ that are the acknowledged export product of the appellant and which, even if not deployed in manufacture of mould, renders the acceptability of the goods for the customer in the absence of which export obligation would remain unfulfilled, it is nothing but ‘consumables’ which are covered by the omnibus enumeration of eligible requirements other than capital goods, the impugned order has erred in denying the benefit of exemption. Accordingly, the impugned order is set aside and appeals allowed.
FULL TEXT OF THE CESTAT MUMBAI ORDER
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