- (1.) The short question which arises for consideration in the present appeal filed by the revenue is "whether the end-use verification of the products is necessary for availing the benefit of concessional rate of duty".
(2.) Respondent-assessee (hereinafter referred to as the 'assessee') is engaged in the business of trading in various commodities including Crude Palm Oil and Crude Palmolin of Non-Edible Grade which is imported in accordance with law. On 28.3.2001, assessee imported consignments of Crude Pal Oil and Crude Palmolin and it is alleged that the assessee got them cleared after paying concessional rate of duty at the rate of 35% as per entry 29 of the Notification No.17/2001-Customs dated 1st March, 2001 instead of clearing the same after paying duty at the rate of 75% as per entry 34 of the same notification. The goods were provisionally allowed to be cleared after taking Bank Guarantee of Rs.10 crores for the differential duty due. Provisional assessment was allowed directing the assessee to produce End-use Certificate so as to avail concessional rate of duty as per Board's Circular No.40/2001-Cus. dated 13th July, 2001.
(3.) Assessee, instead of producing the End-use Certificate, filed a writ petition in the High Court questioning the direction to produce the End-use Certificate which was to be issued by the Assistant/Deputy Commissioner of Central Excise having jurisdiction over last such purchaser on the ground that a new condition could not be added to the notification by issuing a circular. According to the assessee, the Board Circular seeking to impose a limitation on the exemption notification or whittling it down by adding a new condition was not binding on the assessee as it travelled beyond the said notification.;