AERONAUTICAL DEVELOPMENT AGENCY Vs. COMMR. OF CUS., BANGALORE

JUDGEMENT

(1.) THIS is an appeal filed by Aeronautical Development Agency, Bangalore (hereinafter referred to as the Appellant) an autonomous society funded and managed by the Ministry of Defence, Government of India.

(2.) ORIGINALLY , in terms of Notification 228/88 -Cus., dated 1 -8 -1988 the items required for the purpose of LCA Programme, when imported into India by the authorized work center of the Appellants, were exempted from payment of duty. This Notification granted the benefit upto 30 -6 -1992. The benefit of this Notification was extended upto 31 -12 -1992 by Notification 234/92 -Cus., dated 26 -6 -1992. The benefit of the Notification was again continued with effect from 8 -6 -1993 by Notification 128/93 -Cus.

(3.) DURING the interregnum period i.e., January, 1993 to June, 1993 there was no exemption notification current, providing for exemption from payment of Customs duty. On a representation made by the Appellant through the Ministry of Defence, the Department of Revenue issued an ad -hoc exemption order on exercise of powers under Section 25(2) of the Customs Act, 1962, on 10 -1 -1995 exempting the imports made by the various Work Centers of the LCA programme during the period January, 1993 to 8 -6 -1993. For the imports made during the interregnum, at the time of payment of Customs duty, for items for the manufacture of LCA during the interregnum period, the Appellants, indicated in the letters attached to each bill of entry that the extension of the benefit of the original Notification 228/88 -Cus. was under active consideration of the Ministry of Finance and that they would approach the Customs authorities with a refund claim at the appropriate time. Ad -hoc exemption was issued on 10 -1 -1995, the Appellants preferred a refund claim on 17 -2 -1995 seeking refund of the Customs duty paid to the tune of Rs. 1.14 crore.