LOYAL TEXTILE MILLS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS is an appeal filed by M/s. Loyal Textile Mills Ltd directed against the Order -in -Appeal No. 74/2001 -TRY (CUS) (PNV) dated 17.9.2001 passed by the Commissioner (Appeals), Trichy. Vide Bill of Entry No. 322 dated 9.9.98 the appellants imported 'Cone yarn' which had been exported vide Shipping Bill No. 4812 in 1997. They cleared the reimported goods availing exemption in terms of Notification No. 94/96 dated 16.12.1996. The above Notification exempted reimported goods "from so much of the duty of customs leviable thereon which is specified in the said First Schedule, the additional duty leviable thereon under Section 3 of the said Tariff Act and special duty of customs leviable under Sub -section (1) of Section 16 of the Finance (No. 2) Act, 1996 (33/1996), as was in excess of the amount indicated in the corresponding entry in column (3) of the said Table." The common case of the parties is that the impugned goods fell under Sl. No. (d) of the Table which reads as follows: TABLE Description of goods Amount of duty (d) under bond without Amount of Central excise payment of central excise duty not paid duty The appellants had cleared the goods on payment of the amount of Central excise duty not paid on the impugned goods. The original authority had held that the impugned goods had to discharge Special Additional Duty (SAD) as the Notification No. 56/98 -Cus which exempted imported goods from SAD did not cover the impugned goods.

(2.) LD . Counsel for the appellants submitted that the appellants had paid the appropriate Central Excise duty on the subject goods as per the Notification No. 94/96 -Cus dated 16.12.1996 which prescribed the duty payable on goods reimported. The said Notification also exempted reimported goods from SAD.

(3.) LD . SDR submits that Notification No. 94/96 -Cus dated 16.12.99 had also exempted reimported goods from the SAD imposed under Finance Act, 1996.