Kinjal Precious Pvt. Ltd. Vs Commissioner, Customs (CESTAT Delhi)
CESTAT Delhi held that exemption from special additional duty (SAD) of customs under the Notification No. 21/2012-CUS dated 17.03.2012 is not available on import of parts of articles of jewellery.
Facts- The issue involved in all the six customs appeals is as to whether gold/platinum/silver findings, which are parts of jewellery, are eligible for exemption from countervailing duty under the Notification No. 12/2012-CE dated 17.03.2012, as amended from time to time, and from special additional duty of customs under the Notification No. 21/2012-CUS dated 17.03.2012.
Conclusion- An exemption notification has to be strictly construed and the burden of proving that the case falls within the parameters of the exemption clause or the exemption notification is on the assessee; and if there is any ambiguity in the notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the assessee and it must be interpreted in favour of the revenue.
Similar would be the position with regard to the SAD exemption notification. Entry at serial no. 78 of Chapter heading 7113 describes the goods as articles of jewellery and not as parts of articles of jewellery. The Commissioner (Appeals) has recorded a finding that since they are different articles, an assessee cannot claim the benefit of SAD exemption notification on import of parts of articles of jewellery. The finding recorded by the Additional Commissioner and the Commissioner (Appeals), therefore, does not suffer from any legality.
FULL TEXT OF THE CESTAT DELHI ORDER
The issue involved in all the six customs appeals is as to whether gold/platinum/silver findings, which are parts of jewellery, are eligible for exemption from countervailing duty 1 under the Notification No. 12/2012-CE dated 17.03.20122, as amended from time to time, and from special additional duty of customs3 under the Notification No. 21/2012-CUS dated 17.03.20124.
2. The effective rates of duty of CVD for (i) Articles of jewellery and (ii) Articles of silver jewellery are prescribed in Entry No. 199 of the CVD exemption notification and the relevant portion of this notification is as follows:
“Notification No. 12/2012-Central Excise
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India. xxxxxxxxxx, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (3) of the Table below read with relevant List appended hereto and falling within the chapter, heading or sub-heading or tariff item of the First Schedule to the Central Excise Act, 1985 (5 of 1986) (hereinafter referred to as the Excise Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of excise specified thereon under the First Schedule to the Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table and subject to the relevant conditions annexed to this notification, if any, specified in the corresponding entry in column (5) of the Table aforesaid.”
