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Dated: 07.04.2025

CESTAT Kolkata Held that the imported goods were eligible for exemption benefits

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, has dismissed the Revenue’s appeal and upheld the benefit of exemption under Notification No. 12/2012-Cus dated 17.03.2012 (Sl. No. 399A) in favor of M/s. Sunrise International. The judgment, delivered on 4th April 2025, confirms that power tillers and rotary tillers are the same goods and thus eligible for concessional duty benefits.

Background of the Case

• M/s. Sunrise International imported consignments of power tillers/rotary tillers with standard tools and accessories from China.
• The importer claimed exemption under Notification No. 12/2012-Cus (Sl. No. 399A).
• Though initially granted, the benefit was later denied during re-assessment, and the importer was asked to pay duty, which they did under protest.
• The Commissioner (Appeals) ruled in favor of the importer, allowing the exemption.
• The Revenue challenged this decision before CESTAT Kolkata.

Tribunal’s Observations

• The Revenue cited the decision in Commissioner v. Chirag Corporation, 2020 (374) ELT 444 (Tri.-Kolkata), where exemption was denied.
• However, the Tribunal referred to its later ruling in BTL EPC Ltd. & Chirag Corporation (Final Order No. 75478-75479/2022 dated 17.08.2022), which clarified that power tillers and rotary tillers are interchangeable terms for the same product.
• It was also noted that even on remand from the High Court, this view was maintained.

Final Verdict

• The Tribunal upheld the order of the Commissioner (Appeals).
• Ruled that Sunrise International is entitled to the benefit of the exemption under Notification No. 12/2012-Cus.
• Revenue’s appeal was dismissed.

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Source: CESTAT Kolkata

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