Viswanadha Institute of Tech. of Vs. Commr. of Cus., Icd - Court Judgment

Excerpt:
1. the applicant is an engineering college and availed exemption under notification no. 51/96-cus. in regard to lcd projector. the exemption was availed of based on eligibility certificate issued by jawahar lal nehru university. subsequently, eligibility certificate was cancelled.the present proceedings are based on such cancellation of the certificate. the customs authorities, in addition to demanding duty, have also confiscated the. lcd projector.2. the submission is that at the time of clearance of the goods, the appellant had produced a valid certificate, that satisfied the requirement under the notification and exemption once correctly availed cannot be revoked subsequently on the ground of cancellation of the certificate, 3. prima facie we find merit in the appellant's contention. the exemption was availed of based on a proper certificate. the cancellation of the certificate is not on the ground that the certificate was obtained by fraud from the certificate issuing authority. further, the appellant has already deposited an amount of rs. 60,000/-.4. in the above circumstances, the stay application is allowed and recovery stayed in terms of the impugned order till the disposal of the appeal.

Judgment:
1. The applicant is an Engineering College and availed exemption under Notification No. 51/96-Cus. in regard to LCD Projector. The exemption was availed of based on eligibility certificate issued by Jawahar Lal Nehru University. Subsequently, eligibility certificate was cancelled.

The present proceedings are based on such cancellation of the certificate. The Customs authorities, in addition to demanding duty, have also confiscated the. LCD projector.

2. The submission is that at the time of clearance of the goods, the appellant had produced a valid certificate, that satisfied the requirement under the notification and exemption once correctly availed cannot be revoked subsequently on the ground of cancellation of the certificate, 3. Prima facie we find merit in the appellant's contention. The exemption was availed of based on a proper certificate. The cancellation of the certificate is not on the ground that the certificate was obtained by fraud from the certificate issuing authority. Further, the appellant has already deposited an amount of Rs. 60,000/-.

4. In the above circumstances, the stay application is allowed and recovery stayed in terms of the impugned order till the disposal of the appeal.