Flexi Tuff International Limited Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Ahmedabad held that benefit of exemption from additional duty of customs i.e. benefit of notification no. 43/2002-Cus dated 19.04.2002 available on import of High Speed Diesel even if they are working under DEEC Scheme.
Facts- The appellant are manufacturer and exporter of plastic bags and sacks falling under Chapter Heading 39 of the schedule to Central Excise Tariff Act, 1985. The Notification No. 43/2002-Cus dated 19.04.2002 exempts materials imported into India against an advance license issued in terms of sub-paras (a) and (b) of paragraph 4.1.1 of the Export and Import Policy from the whole of duty of Customs leviable thereon which is specified in the first schedule of the Customs Tariff Act, 1975 and whole of the additional duty, safeguard duty and anti-dumping duty leviable u/s. 3, 8 and 9A of the Customs Tariff Act.
It has been the contention of the department that additional duty of Customs on HSD oil has been imposed on import of HSD u/s. 116 of the Finance Act, 1999 at the rate of Rs.1 per liter with effect from 01.03.1999 which is subsequently enhanced to Rs. 1.5 per liter with effect from 01.03.2003 vide section 168 of the Finance Act, 2003. The department is of the view that since the additional duty of Customs at the rate of Rs. 1 per liter was imposed by the Finance Act, the appellant is not entitled to the benefit of Notification No. 43/2002-Cus dated 19.04.2002.
