B.K. KRAFTS LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appeal filed by M/s. B.K. Krafts Limited is posted today for hearing stay petition. For the reasons recorded below we stay the recovery of the duty and take up the appeal itself for disposal with the consent of both the sides.

(2.) Shri R.S. Saini learned Consultant, submitted that the Appellants imported waste paper during January, 2001 to 11 -12 -2001 which was cleared by them on payment of concessional rate of customs duty availing the benefit of Notification No. 17/2001 -Cus., dated 1 -3 -2001; that the Commissioner under the impugned order has confirmed the demand of duty and imposed penalty on the ground that the benefit of notification was available subject to the use of the imported goods for manufacture of paper whereas the Appellants used the imported paper waste in the manufacture of paperboard. The learned Consultant, further, submitted that the Notification No. 17/2001 -Cus. has been amended by Notification No. 109/2001 -Cus., dated 23 -10 -2001 whereby the imported goods can be used in the manufacture of paper and paperboard; that Notification No. 56/2002 -Cus. (N.T.), dated 26 -8 -2002 has been issued under Section 28A of the Customs Act providing that the duty of customs payable on imported goods shall not be required to be paid during the period commencing on the first day of March, 2000 and ending with the 22nd day of October, 2001. He submitted that in view of these two notifications, they are not liable to pay any duty. We heard also Shri U. Raja Ram, learned JDR.

(3.) We have considered the submissions of both the sides. Notification No. 17/2001 -Cus., dated 1 -3 -2001 (Sl. No. 139) provided concessional rate of duty in respect of all goods falling under Heading No. 47.07 of the First Schedule to the Customs Tariff Act, imported for use in, or supply to a unit for manufacture of paper or paperboard. This notification was amended by Notification No. 109/2001 -Cus., dated 23 -10 -2001 by which the imported goods can be used for the manufacture of paper and paperboard. As such the goods imported on or after 23 -10 -2001 are eligible for concessional rate of duty even if they are used in the manufacture of paper board. Further, as it was observed by the Central Government that the goods falling under Heading 47.07 were being allowed to be imported at concessional rate of duty and used in a unit for manufacture of paper board, it issued Notification No. 56/2002 -Cus., dated 26 -8 -2002 under Section 28A of the Customs Act directing that the customs duty payable on the goods under Heading No. 47.07 imported for use in a unit for manufacture of paper -board shall not be required to be paid, during the period from 1 -3 -2000 to 22 -10 -2001. In terms of this Notification issued under Section 28A of the Customs Act, no duty remains payable by the Appellants for use of waste paper in the manufacture of paperboard during the period January, 2001 to December, 2001. Accordingly, we set aside the demand of duty as well as penalty and allow the appeal.