2007 (2) TMI 66 - AT - Customs

Demand(Customs) Appellant fail to clear the imported goods within the fixed time of thirty days and accordingly demand duty on it by Custom Authority Commissioner granted permission to Custom Authority to disposed the goods

Summary

Issues:
1. Failure to clear imported goods within the stipulated time under the Customs Act.
2. Applicability of Section 48 of the Customs Act in the case.
3. Duty demand made on the imported goods.
4. Adjudication order regarding duty, confiscation, and penalty.

Analysis:

1. Failure to Clear Imported Goods:
The appellant failed to clear imported machinery within the specified time frame, leading to the initiation of proceedings under the Customs Act. The Customs authorities took steps for the disposal of the goods, which remained uncleared at the Container Freight Station since 1996.

2. Applicability of Section 48 of the Customs Act:
Section 48 of the Customs Act outlines the procedure for dealing with goods not cleared within the designated period. The section allows for the sale of such goods after notice to the importer and with the permission of the proper officer. In this case, the goods were subject to disposal by the custodian, the Chief Port Manager, Container Freight Station, as they remained uncleared for an extended period.

3. Duty Demand on Imported Goods:
The adjudication order demanded duty amounting to Rs. 3,60,95,582 from the appellant. However, the Tribunal found that the demand was not sustainable in the given legal context. As per Section 48 of the Customs Act, the goods were required to be disposed of by the custodian, and there was no basis for imposing duty on the appellant in this situation.

4. Adjudication Order Regarding Duty, Confiscation, and Penalty:
The order of adjudication concluded that while duty was chargeable on the goods, they were not liable for confiscation under Section 111(o) of the Customs Act. The order refrained from imposing a penalty on the appellant or the Chairman-cum-Managing Director of the company. The Tribunal overturned the duty demand made in the adjudication order, stating that there was no legal basis for such a demand given the circumstances of the case.

In summary, the Tribunal ruled in favor of the appellant, setting aside the duty demand and interest imposed. The authorities were directed to dispose of the goods in accordance with Section 48 of the Customs Act. The appeal was allowed on the grounds that the demand made under the impugned order was not sustainable in light of the legal provisions governing the situation.