ANIL EXPORTS Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) AS per facts on record, appellants imported Flock fabrics and filed Bills of Entry claiming exemption in terms of Serial No. 108 of Notification No. 23/98 -Cus. The said notification provided concessional rate of duty to the goods for use in the Leather Industry. As the appellant could not produce the end use certificate by the Central Excise authority having jurisdiction over the factory of the buyers, proceedings were initiated by way of issuance of show cause notice dated 25 -8 -1999, which resulted in confirmation of demand of duty to the extent of Rs. 3,49,992/ -. The order passed by the Original Adjudicating Authority was confirmed by Commissioner (Appeals). The Tribunal, however, set aside the said order and remanded the matter to Original Adjudicating Authority for fresh adjudication with specific directions that the Chartered Accountant certificate produced by the appellant on record be examined and matter be decided afresh.

(2.) IN terms of the above directions, Assistant Commissioner vide his order dated 9 -2 -2005 adjudicated the matter again and held that Chartered Accountant certificated showing sale of the fabrics to the leather manufacturer established that the goods have been used in the leather industry. He also observed that the importer could not produce end use certificate signed by the Central Excise Authorities having jurisdiction over the ultimate user as those users were small scale industries and not registered with the Central Excise department. He accordingly, vacated the show cause notice.

(3.) BEING aggrieved with the above order, Revenue filed appeal before Commissioner (Appeals). Appellate authority observed that the condition of end use is in -built in the entry/serial No. 108 itself and as the assessee could produce the end use certificate, the condition of the Notification was not satisfied. He accordingly, reversed the order of the Original Adjudicating Authority. Hence the present appeal.