2026-VIL-1628-CESTAT-HYD-CU
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CUSTOMS CESTAT Cases

Customs - Eligibility for exemption of Mono Ethylene Glycol Reclamation Plant under Notification No. 50/2017-Cus - S.No.404 of List 33 — Appellant imported Mono Ethylene Glycol Reclamation Plant under Bills of Entry during 03.01.2023 to 17.06.2024, classifying the same under CTH 84198990 and claiming exemption from payment of Customs duty under S.No.404 of Notification No. 50/2017-Cus. Original Authority denied exemption on the ground that the goods do not fall within heading 8430 mentioned in column 2 of List 33. Commissioner (Appeals) allowed the appeal holding that goods are eligible for exemption - Whether the impugned goods, which are equipment for specialized services meant for offshore and onshore petroleum operations but classifiable under heading 8419 instead of heading 8430, are eligible for exemption in terms of S.No.404 when the Notification extends exemption to goods as described in column 3 of the table read with List 33 and not by reference to column 2 of List 33 – HELD – The plain reading of the notification indicates that exemption is extended to goods specified in column 3 of List 33 when imported by a specified person in relation with petroleum operations - The impugned good qualifies as equipment for specialized services meant for offshore and onshore petroleum operations, which has been certified by the Directorate General of Hydrocarbons. The goods satisfy all three requirements for eligibility i.e. the description as specified in column 3 of the table read with List 33, falling within Chapter 84 as specified in column 2 of the main table, and the conditions specified in column 6 are satisfied - The headings mentioned in column 2 of List 33 are not exhaustive and do not restrict the scope of the description provided in column 3. Since the impugned goods fall within the description of goods, they are eligible for exemption notwithstanding that they fall under heading 8419 and not 8430 - The amendment in 2024 inserting a specific entry for the impugned goods operates prospectively and does not retrospectively deny the benefit available under S.No.4 during the relevant period prior to the amendment - The notification was intended to provide exemption to goods used for petroleum exploration, production and processing, therefore the entry must be construed as a beneficial exemption and interpreted liberally. No ambiguity exists in the plain reading of the notification, hence the ratio of CC (Import), Mumbai Vs Dilip Kumar & Company is not applicable - The impugned goods are eligible for exemption from customs duty under S.No.404 of Notification No. 50/2017-Cus – The appeal filed by the department is dismissed
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GST & Customs updates: Sep'26
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