2002 (2) TMI 781 - AT - Customs

Summary

Issues:
1. Import of goods under bond and subsequent changes in import policy affecting clearance.
2. Imposition of duty, interest, and penalty by the Deputy Commissioner.
3. Appeal filed before Commissioner (Appeals) against the Deputy Commissioner's order.
4. Request for extension of warehousing period and legal obligations regarding the same.
5. High Court's intervention and direction to hear the stay application.
6. Commissioner (Appeals) decision upholding the Deputy Commissioner's order but dropping the penalty.
7. Appeal filed against the Commissioner (Appeals) order.

Issue 1: Import of Goods and Policy Changes
The appellant imported goods and stored them in a private bonded warehouse under a specific bond. Changes in the import policy made it challenging to clear the goods due to restrictions on second-hand capital goods. Efforts were made to re-export the goods as per the altered policy, but collaborators faced difficulties in accepting the machinery back. The bond period expired, leading to the Deputy Commissioner confirming payment of duty and imposing a penalty, citing a Supreme Court decision for validation.

Issue 2: Imposition of Duty, Interest, and Penalty
The Deputy Commissioner confirmed the duty payment along with interest and imposed a penalty based on the expired bond period. The appellant's request for an extension to re-export the goods was denied, leading to the imposition of financial obligations. The penalty was later dropped by the Commissioner (Appeals) while upholding the duty payment.

Issue 3: Appeal Before Commissioner (Appeals)
An appeal was filed challenging the Deputy Commissioner's order before the Commissioner (Appeals). Despite efforts to seek time for re-export and interventions to prevent auctioning of goods, the initial decision was upheld, except for the penalty being revoked.

Issue 4: Extension of Warehousing Period
The appellant sought an extension of the warehousing period through proper channels, including addressing the Chief Commissioner of Customs. Legal provisions allowed for such extensions, and the High Court directed the Commissioner (Appeals) to consider the stay application in this regard.

Issue 5: High Court Intervention
The High Court intervened in response to a writ petition filed by the appellant, directing the Commissioner (Appeals) to address the stay application concerning the warehousing period extension.

Issue 6: Commissioner (Appeals) Decision
The Commissioner (Appeals) rejected the appellant's contentions but decided to drop the penalty while maintaining the duty payment as confirmed by the Deputy Commissioner, leading to the current appeal against this decision.

Issue 7: Appeal Against Commissioner (Appeals) Order
The present appeal challenges the Commissioner (Appeals) decision, emphasizing the need for permission to re-export the goods and claiming drawback on the duty paid, as permissible under Section 74 of the Customs Act, 1962. The appellate tribunal permitted the export on payment of duty under the claim of drawback, thereby disposing of the appeal accordingly.