2025-VIL-182-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs - Retrospective applicability of Notification No. 36/2021-Customs dated 19.07.2021 - Appellant challenged the retrospective applicability of Notification No. 36/2021-Customs dated 19.07.2021, which amended Notification No. 45/2017-Customs dated 30.06.2017 concerning exemption from ‘duty of customs’ on re-import of goods after repairs – Appellant case that the amendment substantively altered the original notification by including integrated tax, which was initially interpreted by the Tribunal to be excluded from the term ‘duty of customs’ in the context of the exemption - Whether Notification No. 36/2021-Customs dated 19.07.2021, amending the Exemption Notification No. 45/2017-Customs dated 30.06.2017, has retrospective effect from 30.06.2017, thereby making integrated tax leviable on the repair value of re-imported goods for the period prior to the amendment – HELD - The Notification No. 36/2021-Customs does not have retrospective effect as the amendment, issued under Section 25(1) of the Customs Act, is substantive and not merely clarificatory as it introduces a new liability of Integrated Tax which was not explicitly included in the original Exemption Notification - The Section 25(4) of the Customs Act stipulates that notifications under Section 25(1) come into force on the date of their issue unless explicitly stated otherwise, and as Notification No. 36/2021-Customs lacks any provision for retrospective application, it is effective only from its date of issuance i.e., 19.07.2021 - the use of words like ‘clarification’ and ‘removal of doubt’ in the amending notification does not automatically render it clarificatory or retrospective, especially when it alters the original provision's meaning and imposes a new tax liability - The orders impugned in the appeals are set aside and the appeals are allowed

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