2001 (12) TMI 868 - AT - Customs

Summary

Issues:
Short receipt of imported goods at the factory premises, demand for customs duty, execution of bonds, applicability of exemption notification, discrepancy in quantity received, remission of duty under Customs Act.

Analysis:
1. Short receipt of imported goods at the factory premises:
The appellant, a 100% Export Oriented Unit, imported Chinese Low Ash Metallurgical Coke and claimed exemption under Notification No. 53/97-Cus. The Superintendent of Customs alleged a short receipt of 92.770 M.T. and issued a show cause notice for realizing Customs Duty of Rs. 1,94,766.00. The Dy. Commissioner confirmed the demand, leading to the appeal before the Tribunal.

2. Execution of bonds and discrepancy in quantity received:
The appellant argued that there was no shortage in the receipt of goods at their factory premises. They contended that the quantity despatched from Paradeep was 11968.595 M.T., while the quantity received at Choudwar was 12019.230 M.T., as per actual weighment. The appellant relied on a previous Tribunal decision in their favor, emphasizing that there was no violation of the exemption notification or the executed bonds.

3. Applicability of exemption notification and remission of duty under Customs Act:
The Revenue contended that the appellants were liable to pay the differential duty due to the shortage in imported goods at their factory premises, as per the conditions of the executed bonds. However, the Tribunal noted that a previous decision involving the same appellant had established that there was no transit loss, and the quantity received was higher than the despatched quantity. Citing Section 23 of the Customs Act, the Tribunal held that remission of duty is permissible for goods lost or destroyed before clearance for home-consumption. Consequently, the demand for duty was deemed unjustified, and the appeal was allowed by setting aside the Commissioner (Appeals) order.

In conclusion, the Tribunal ruled in favor of the appellant, emphasizing that there was no basis to demand any duty from them due to the discrepancy in the quantity received and the established remission provisions under the Customs Act.