Case Law Details
Commissioner of Customs Vs Natraj Interwoven Labels & Mfg. Co (CESTAT Chennai)
In a recent ruling, the CESTAT Chennai examined the applicability of CVD exemption under Notification No. 30/2004-CE for a trader not availing CENVAT credit. The case, Commissioner of Customs Vs Natraj Interwoven Labels & Mfg. Co, centred on the import of silk fabrics by the respondent and their eligibility for the said exemption.
The Department claimed that the respondent failed to meet the condition of the notification, which stipulated that no CENVAT Credit of duty paid on inputs shall be taken by the importer. The Commissioner (Appeals) initially sided with this viewpoint, leading to the Department’s appeal before the Tribunal. The appellant argued that as a trader, the respondent did not fulfill the conditions as they did not avail CENVAT Credit.
However, the respondent’s counsel countered that as a trader, the respondent was not in a position to avail CENVAT Credit of duty paid on inputs, but the imported goods were eligible for CVD exemption as per the notification. Citing prior Tribunal and Supreme Court rulings, they argued for the respondent’s eligibility for the exemption.
The CESTAT Chennai, while upholding the respondent’s claim, dismissed the Department’s appeal. The Tribunal followed the decision of the Supreme Court in the case of SRF Ltd., asserting that the benefit of notification 30/2004 is eligible to the Respondent even though CENVAT Credit has not been availed on inputs.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
