SIGN IN SUBSCRIBE

News Update

Israel shuts down Al Jazeera; seizes broadcast equipmentIndia to wait for Canadian Police inputs on arrest of men accused of killing Sikh separatist: JaishankarLabour Party candidate Sadiq Khan wins record third term as London MayorArmy convoy ambushed in Poonch sectorDeadly floods evict 70K Brazilians out of homes; 57 killed so farGovt scraps ban on export of onionFormer Delhi Congress chief Arvinder Singh Lovely joins BJP with three moreUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedGST - Payment of pre-deposit through Form GST DRC-03 instead of the prescribed Form APL-01 - Petitioner attributes it to technical glitches - Respondent is the proper authority to decide the question of fact: HC2nd Session of India-Nigeria Joint Trade Committee held in AbujaGST - Since SCN is bereft of any details and suffers from infirmities that go to the root of the cause, SCN is quashed and set aside: HC1717 candidates to contest elections in phase 4 of Lok Sabha Elections7th India-Indonesia Joint Defence Cooperation Committee meeting held in New DelhiGST - Neither the Show Cause Notice nor the order spell out the reasons for retrospective cancellation of registration, therefore, the same cannot be sustained: HCMining sector registers record production in FY 2023-24GST - If the proper officer was of the view that the reply is unclear and unsatisfactory, he could have sought further details by providing such opportunity - Having failed to do so, order cannot be sustained - Matter remanded: HCAnother quake of 6.0 magnitude rocks Philippines; No damage reported so farTrade ban: Israel hits back against Turkey with counter-measuresCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implication
 
Cus - Whether 'recognition' is equivalent to 'registration’ - Revenue to cause enquiry from Dept. of Science: CESTAT

By TIOL News Service

MUMBAI, SEPT 14, 2017: IN respect of goods imported and which were meant for in-house research and development, the importer was granted exemption from payment of Basic customs duty in terms of serial No. 248 of Notification No. 21/2002-Cus dated 1.3.2002 as amended.

The Customs notification is extracted below -

 

 

248

84,85 or 90

(1) The following goods for use in pharmaceutical and biotechnology sector, imported for research and development purposes, by an importer registered with the Department of Scientific and Industrial Research, in the Ministry of Science and Technology of the Government of India, namely:-

      

However, exemption from additional duty of customs was not granted in terms of Notification No.10/1997-CE dated 1.3.1997.

The Central Excise notification entry insofar as that is applicable to the present case is -

S.No.

Name of the Institutions

Description of the goods

Conditions

(1)

(2)

(3)

(4)

"2.

Research institution, other than a hospital

(a) Scientific and technical instruments, apparatus, equipment (including computers);

(1) The institution

(i) is registered with the Government of India in the Department of Scientific and Industrial Research;

The reason for denial of the CE exemption is that the "institution is not registered with the Government of India".

The Appellant submits that it is recognized by the Department of Science and Industrial Research as an in-house research institution and such recognition is equivalent to registration as envisaged by Notification No. 10/1997-CE.

The only controversy in the appeal is to the effect whether "recognition shall amount to registration".

The AR submitted that "recognition" does not amount to "registration" when the decision of Tribunal in the case of Guard Electronics Systems Pvt. Ltd. vs. CCE, Delhi-II - Order no. A/633/2004-NB(C) dated 02.09.2004 is read.

The Bench observed -

"6. The legislature uses specific term in a notification to grant benefit at public cost. The grant of notification depends on such term and the object thereof. That is to be looked into it for the purpose of grant of benefit thereof. Therefore in all fairness, Revenue is directed to cause enquiry from the Department of Science and Industrial Research, Ministry of Science and Technology, to ascertain what does ‘registration" mean in terms of the notification. On the basis of the outcome of the enquiry confronting the result thereof, learned adjudicating authority shall pass appropriate order granting reasonable opportunity of hearing to the appellant. We may mention at this stage that on similar such terminology of "registration" used in Notification No. 21/2002-Cus. dated 1.3.2002, basic customs duty exemption has been granted to the appellant. We do not understand why learned adjudicating authority granted that benefit and denied benefit of exemption from additional duty of customs under Notification No. 10/1997-CE dated 1.3.1997."

The matter is remanded to the adjudicating authority.

(See 2017-TIOL-3334-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST