Madras HC denies exemption benefit w.r.t. imports made prior to registration under Rules

Last updated: 24 January 2020

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Quick Summary

The Madras High Court has ruled that businesses cannot claim duty exemption for imported goods if the imports occurred before they were officially registered under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. The court emphasised that all conditions and regulations prescribed in exemption notifications must be strictly followed, disallowing retrospective application of the rules.

Court :
Madras High Court

Brief :
The Hon'ble Madras HC in Civil Miscellaneous Appeal No. 1699 of 2017 dated January 6th, 2020, allowed the Revenue's appeal to hold that to avail the exemption of duty under any Notification, the Rules and Regulations and the conditions prescribed therein have to be strictly adhered and thus, the Assessee is not entitled to claim exemption in respect of import of goods made prior to the date of Registration under Rule 3 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 ('Customs Import Rules 1996').

Citation :
The Commissioner of Customs, Chennai ('the Appellant' or 'Revenue') has filed an appeal in the Hon'ble Madras High Court ('Madras HC') against the Final Order No. 41210 of 2015 dated September 14th, 2015 passed by the CESTAT Chennai in favour ofMedreichSterilab Ltd. ('the Respondent') vide Civil Miscellaneous Appeal No. 1699 of2017, whereby the Hon'ble Tribunal dismissed the Appeal filed by the Appellant in favour of the Respondent M/s.MedreichSterilab Limited ('the Company'or 'the Assessee').

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