2003 (7) TMI 145 - AT - Customs

Summary

Issues involved:
1. Alleged mis-utilization of the Pass Book Exemption Scheme leading to confiscation of goods and imposition of penalties.
2. Validity of the show cause notice and jurisdiction of the Assistant Collector in issuing the notice.
3. Jurisdiction of the Collector of Customs (Preventive) in ordering confiscation and assessment of goods under clearance.
4. Applicability of previous judgments in determining the proper officer for assessing goods pending clearance.

Analysis:

1. The Company and its Managing Director were engaged in the manufacture and export of Readymade Garments and furnishing fabrics under the Pass Book Exemption Scheme. Allegations were made regarding the mis-utilization of the scheme, leading to the confiscation of goods and imposition of penalties by the Collector of Customs (Preventive), Mumbai.

2. The validity of the show cause notice dated 28-6-1991 was questioned by the appellants, citing issues with the jurisdiction of the Assistant Collector in issuing the notice. It was argued that the demand for customs duty mentioned in the notice was barred by limitation and lacked proper invocation of relevant provisions under the Customs Act.

3. The jurisdiction of the Collector of Customs (Preventive) in ordering the confiscation of goods found in the Parekh Warehouse and Bombay Dock was disputed. The Tribunal referred to a previous case to determine that the Collector of Customs (Prev.) did not have the authority to assess goods pending clearance without proper transfer orders, thereby questioning the validity of the confiscation and assessment made by the Collector.

4. Relying on previous judgments and legal principles, the Tribunal concluded that the show cause notice issued by the Assistant Collector was not valid in law. Consequently, the orders of confiscation, penalties, and assessments were set aside. The Tribunal directed the Bills of Entry pending assessment to be evaluated by the proper officer, emphasizing the importance of adhering to jurisdictional boundaries in customs assessments and confiscations.

This detailed analysis of the judgment highlights the key legal issues, arguments presented, and the Tribunal's findings regarding the alleged mis-utilization of the Pass Book Exemption Scheme and the jurisdictional aspects of the customs proceedings.