#Customs Duty Exemption

CESTAT Chennai rules that 100% Export Oriented Units (EOUs) destroying duty-free inputs under FTP Para 6.15 are not liable for Customs or Excise duty, even pre-2015. The Tribunal held the 2015 amendments clarificatory and retrospective, shielding EOUs from duty demands, interest, and penalties for obsolete inputs destroyed with due intimation to authorities.

CESTAT Chennai ruled that ELFA diagnostic kits, operating on the ELISA principle, are eligible for concessional customs duty under Notification No. 50/2017-Cus, overturning a ₹68.20 crore demand. The decision underscores purposive interpretation of tax laws to accommodate technological advancements in diagnostic methods, impacting importers of similar medical devices.

CESTAT rules that sales of MS scrap to SEZ units are exempt from customs duty under Section 26(1)(e) of the SEZ Act, 2005. The tribunal set aside the demand, interest, and penalties, holding that the department violated principles of natural justice by not providing a fair hearing to the appellant.

CESTAT rules that supplies to SEZ units under Section 26(1)(e) of the SEZ Act are exempt from customs duty, and any penalty imposed without proper notice or evidence violates principles of natural justice. The tribunal set aside a ₹72 lakh demand, reinforcing that procedural fairness is non-negotiable in duty exemption cases affecting traders and SEZ operators.

CESTAT Chennai rules that the absence of Country of Origin (COO) markings on aluminium scrap does not invalidate preferential duty exemption under the ASEAN-India FTA if all documentary evidence is verified. The Tribunal emphasizes that physical markings are not mandatory for scrap goods, reinforcing the principle of substantial compliance in trade agreements.