Tribunal has rejected the appeals filed by the appellants and held that the appellants had not satisfied the conditions for availing the benefit of the Notification No.8/96-CE dated 23rd July 1996 on the ground that the copper waste and scrap used by the appellants had been imported and had not been generated in the factory of production.
Whether the scrap imported by the appellants is chargeable to ‘NIL’ rate of additional customs duty under Section 3 of the Customs Tariff Act 1975.
It is a matter of fact that duty was paid by the appellant at the time of import of waste or scrap. Mere fact that the goods were imported would not make any difference. The intention behind the grant of exemption under the notification was to prevent the duty being paid at two stages. In the present case, an amount equivalent to the excise duty had been paid by the appellants at the time of import on the waste and scrap. If the benefit of the notification is not given to the appellants it would mean double payment of duty which goes contrary to the law laid down.
IN THE SUPREME COURT OF INDIA
Appeal (civil) 2411 of 2002
M/s. Lohia Sheet Products
Versus
Commissioner of Customs, New Delhi
Date of Judgment: 05/03/2008
J U D G M E N T
ASHOK BHAN, J.
