2013 (7) TMI 103 - CGOVT - Central Excise

Procedural lapses - CT-1 certificates issued to applicant for procurement of excisable goods without payment of duty and to export them from JNPT Nhava Sheva. Applicant instead, exported the goods from New Customs House, Mumbai and submitted valid proof of export to Assistant Commissioner, Central Excise, Raigad where the bond was executed. - Held that - where export of said goods is established and department has also not disputed the export of goods, so the substantial requirement of law is complied with - For violation of conditions of Notification, adjudicating authority has imposed penalty of ₹ 5000/- so as to regularize the matter As per Hon ble Supreme Court in M/s. Suksha International case 1989 (1) TMI 316 - SUPREME COURT had held that interpretations/restrictions so as to defeat the very purpose of Govt. policy should be avoided - The applicant is already penalized for procedural violations - substantial benefit cannot be denied for procedural infractions. - Decided against the Revenue.

Summary

Issues:
Jurisdiction of Assistant Commissioner for accepting proof of export from New Custom House, Mumbai under Notification No. 42/2001-C.E. (N.T.), dated 26-6-2001.

Analysis:
The revision application was filed against the order-in-appeal by the Commissioner of Central Excise, Raigad regarding the acceptance of proof of export by M/s. Amira Foods (I) Ltd. The case involved the issuance of CT-1 certificates for export from JNPT, which were used for exporting goods from New Custom House, Mumbai, contrary to the conditions stipulated. The Assistant Commissioner accepted the proof of export after imposing a penalty under Rule 27 of Central Excise Rules, 2002. The jurisdictional Commissioner and Commissioner (Appeals) rejected the appeal against this decision.

The revision application argued that the Assistant Commissioner, Raigad, lacked the authority to issue CT-1 certificates for exports from New Custom House, Mumbai, as per the notification. It was contended that the conditions specified in the notification were not fulfilled, and the export took place without meeting the necessary procedures. The applicant department highlighted previous judgments emphasizing the importance of fulfilling notification conditions for availing exemptions.

The government reviewed the case records and found that while the Assistant Commissioner had exceeded his jurisdiction by accepting proof of export for goods exported from New Custom House, Mumbai, the export itself was established, and the department did not dispute it. The government acknowledged the technical correctness of the department's argument but noted that the substantial requirement of law was met through the established export. It cited previous Supreme Court cases to support the view that substantial benefits should not be denied for procedural infractions. Consequently, the government upheld the order-in-appeal, rejecting the revision application for lack of merit.