2014 (4) TMI 266 - AT - Customs

Show cause notice of dredging operation - Invocability of extended period of limitation Held that - Admittedly show-cause notice has been issued by invoking the extended period of limitation - The vessel was entered in the port on 18.08.2000 and started dredging operation - It remained there for one month and nobody objected the dredging operation of respondent - Thus, as observed by the Commissioner that these documents have been filed with the customs cannot be doubted This court holds that extended period is not invokable - There is no infirmity in the impugned order, the same is upheld - Appeal dismissed Decided against Revenue.

Summary

Issues:
Appeal against dropping proceedings as barred by limitation.

Analysis:
The judgment deals with an appeal by the Revenue against an order where the Commissioner dropped proceedings initiated against the respondents, citing limitation. The case involved a vessel 'Dredger Volvox Hansa' that arrived at Marmagao port on 18.08.2000 and conducted dredging operations until 29.09.2000. A show cause notice for penalty was issued on 09.10.2001, alleging suppression without invoking a specific provision. The Commissioner ruled that since the department was aware of the respondent's activity from the beginning, the extended period of limitation couldn't be applied. The appeal argued that there was no evidence that the department had knowledge of the dredging operation, thus the extended limitation period should apply.

The Appellate Tribunal considered the arguments presented. It noted that the vessel had entered the port on 18.08.2000 and conducted dredging operations for a month without objection. The Tribunal found that the Commissioner's observation about the documents being filed with customs was credible, as no objections were raised during the dredging period. Consequently, the Tribunal held that the extended limitation period was not applicable in this case. Therefore, it upheld the impugned order, dismissing the Revenue's appeal.