2004 (4) TMI 441 - AT - Customs

Summary

Issues:
1. Jurisdiction for filing appeal based on office and factory location.
2. Waiver of duty under Customs Notification 204/1992.
3. Time-barred demands and enforceability.
4. Violation of Customs Notification by selling imported goods in the local market.
5. Duty liability and penalties imposed.

Jurisdiction for Filing Appeal:
The appellants filed a misc. application as per a Public Notice allowing appeals within the jurisdiction of their business location. Since the appellants were exporters with their office and factory within the jurisdiction of the Bench, the application was allowed.

Waiver of Duty under Customs Notification:
The appellant sought a waiver of duty confirmed under Customs Notification 204/1992 amounting to Rs. 2,98,44,422. The case involved penalties on GVS Exports and individuals for failing to meet export obligations specified in advance licenses obtained for duty-free imports. The Commissioner found the demands not time-barred due to valid bonds and non-compliance with export obligations, leading to duty enforcement.

Time-Barred Demands and Enforceability:
The appellants argued that demands were time-barred except for a specific amount, admitting the validity of the bond but seeking time to deposit the required duty amount. The learned SDR contended that the demands were not time-barred due to valid bonds and cited Supreme Court judgments on duty liability when goods are sold without utilization.

Violation of Customs Notification:
The appellants were found to have violated the Customs Notification by selling duty-free imported goods in the local market without fulfilling export obligations. The Commissioner noted clear violations in selling various imported materials without meeting export obligations, leading to duty liability enforcement.

Duty Liability and Penalties Imposed:
After considering the arguments and records, it was concluded that the appellants had no defense on merits. They were directed to pre-deposit the entire duty amount of Rs. 2,98,44,422. Additionally, penalties were imposed on GVS Exports and individuals, with specific amounts to be deposited within two months. Non-compliance would render the appeals liable for dismissal under the relevant Act. Compliance was to be reported by a specified date.