2014 (1) TMI 790 - AT - Customs

Duty demand - Import of Heavy Melting Scrap of iron - Notification No. 21/2002-Cus., dated 1-3-2002 - Submission of end-use certificate for partial amount imported - Held that - letters, give reference to selling of metal scrap having received under the cover of Bill of Entry No. 00500, dated 24-9-2005 i.e. the same Bill of Entry under which the appellant imported the goods. The requirement of the notification is that the goods should be used for the purpose of melting and jurisdictional Central Excise Officer, under whose jurisdiction the said goods have been so used in such unit, end-use certificate should be produced by the appellant. It is seen that the appellant have applied for issue of such certificate to their jurisdictional Excise Officers. It is not responded by the proper officer. Issue of end-use certificate is in the hands of proper officer after necessary verification and manufacturer concerned having made application, cannot do anything beyond that - impugned order is set aside and remand the matter to the adjudicating authority for afresh decision. Needless to say that the appellant shall produce the application made by their buyers before their jurisdictional authority, who after ascertaining the fact would issue end-use certificate. If not issued, he may call for report from the concerned officer for not issuing the said certificate till date i.e. even after lapse of five years - Decided in favour of assessee.

Summary

Issues:
1. Duty liability on imported goods under Notification No. 21/2002-Cus.
2. Failure to submit end-use certificate for a portion of imported goods.
3. Confiscation of goods, imposition of redemption fine, and penalty.
4. Appeal for issuance of end-use certificate by appellant's buyers.
5. Failure of proper officer to respond to application for end-use certificate.
6. Remand of the matter for fresh decision by the adjudicating authority.

Analysis:
1. The appellant imported Heavy Melting Scrap of iron at nil rate of duty under Notification No. 21/2002-Cus., which required furnishing an undertaking for specific usage. The appellant submitted end-use certificate for a portion of the goods but failed to do so for the remaining quantity, leading to duty demand, confiscation, and penalties.

2. The appellant's advocate argued that the balance quantity was sold to specific entities for producing M.S. Ingots, with the buyers requesting end-use certificates from the jurisdictional Central Excise authority. However, there was no response to these requests, indicating a procedural lapse.

3. The Tribunal observed that the buyers had applied for end-use certificates as required by the notification, and it was the responsibility of the proper officer to issue them after verification. Since no response was received, the impugned order was set aside, and the matter was remanded for a fresh decision.

4. The Tribunal directed the appellant to provide the applications made by their buyers to the jurisdictional authority for the issuance of end-use certificates. If the certificates were not issued, the adjudicating authority was instructed to seek a report from the concerned officer explaining the delay, even after five years.

5. Ultimately, the appeal was disposed of by way of remand, emphasizing the need for proper issuance of end-use certificates in compliance with the notification's requirements. The decision highlighted the importance of procedural adherence and verification by the relevant authorities in such cases.