2001 (6) TMI 75 - CGOVT - Central Excise

Summary

Issues:
1. Demand of Central Excise duty for non-submission of proof of exports.
2. Imposition of penalties under Rule 14A of the CER, 1994.
3. Time limit for issuance of Show Cause Notice.
4. Verification of proof of exports before issuing Show Cause Notice.
5. Authority empowered to enforce terms of bond for recovery of Central Excise duty.

Analysis:
1. The Assistant Commissioner demanded Central Excise duty for non-submission of proof of exports related to certain AR4 numbers. Penalties were imposed under Rule 14A of the CER, 1994. The Commissioner (A) remanded the matter to the original authority for the submission of export documents.

2. The applicant argued that proof of exports for most AR4s was submitted on time. They contended that the Show Cause Notice issued was time-barred and that the duty demanded was higher than confirmed amounts. Reference was made to Tribunal decisions and circulars to support the argument that Show Cause Notices should be issued within six months of clearance for export.

3. The government noted that the bond for exports was filed before the Maritime Commissioner based on the applicant's letter. It was inferred that the authorization for clearance for exports was based on the bond executed before the maritime Commissioner. The question arose regarding the authority empowered to enforce the terms of the bond for the recovery of Central Excise duty.

4. It was clarified that the authority empowered to enforce the bond terms for duty recovery is the one with whom the bond was filed and accepted. The officers at the factory of clearances could only inform the bond-accepting authority about non-receipt of export proof or issue a Show Cause Notice if needed. The Asst. Commissioner could not unilaterally demand duty or impose penalties in this case.

5. The government decided to set aside both the original and appellate orders and remand the matter to the original authority. The original authority was tasked with ascertaining proof of exports from the bond-accepting authority and suggesting further action based on the submission or non-submission of export proof.