Page 213 - ELT_15th June 2020_VOL 372_Part 6th

2020 ] HINDALCO INDUSTRIES LTD. v. COMMISSIONER OF CUSTOMS, AHMEDABAD 891

balance to take care of not only the declared value but also the enhanced value
- Demand not sustainable - Section 28 of Customs Act, 1962. [paras 6, 7, 8]
Appeal allowed
REPRESENTED BY : S/Shri T. Vishwanathan, Manish Jain and Ms.
Shruti, Advocates, for the Appellant.
Shri T.G. Rathod, Joint Commissioner (AR), for the
Respondent.
[Order per : Raju, Member (T)]. - This appeal has been filed by M/s.
Hindalco Industries Limited against denial of the benefit of advance authoriza-
tion issued by the DGFT.
2. Learned Counsel for the appellant pointed out that the Copper Con-
centrate imported by them was being assessed provisionally under Section 18 of
the Customs Act, 1962 pending finalization of the assessable value. At the time of
this import the appellants were claiming benefit of Notification No. 96/2009-Cus.
and advance authorizations issued by DGFT at the time of provisional assess-
ment the provisional value of the imported goods was debited in the advance
authorizations. He pointed out that the assessment was finalized later and by
that time the validity of advance authorizations were over. He pointed out that
while in some cases the value was enhanced at the time of finalization but the
advance authorizations in their possession had sufficient balance to take care of
such enhancements also.
3. Learned Counsel pointed out that revenue is seeking to deny the
benefit of Notification No. 96/2009-Cus. on the ground that the advance authori-
zations on the basis of which the appellants are claiming the benefit and which
were debited at the time of provisional assessment are not valid at the time of
finalization of assessment. He pointed out that the issue was taken up with Poli-
cy Relaxation Committee in terms of Para 2.5 of the following read Policy 2009-
2014. He pointed out that the said committee had given following decisions in
the said dispute.
“The Committee noted that the applicant has imported goods within validi-
ty of Authorizations. Therefore, no further revalidation is required. Imports
made within permissible CIF value and within the validity of the Authori-
zation shall be regularized after final assessment by the Custom Authority.
Excess imports, if any shall be regularized on payment of applicable duty
and interest.”
4. He argued that since at the time of import the license was valid and
had sufficient balance to cover even the enhanced value the benefit of Notifica-
tion No. 96/2009-Cus. cannot be denied.
5. Learned Authorized Representative relied on the impugned order.
6. We have gone through the rival submissions, we find that the dis-
pute is if the benefit of Advance Authorizations can be extended when at the
time of imports, debit were made in valid Advance Authorizations but the Ad-
vance Authorizations have expired at the time of final assessment. We find that
the issue has been deliberated upon by the Policy Relaxation Committee has ob-
served as follows :

EXCISE LAW TIMES  15th June 2020  213