2004 (2) TMI 124 - AT - Central Excise

Summary

Issues Involved: Appeal against duty demand on goods not exported under bond.

Summary:
The appeal was filed by M/s. Hind Nippon Rural Industries (P) Ltd., Mangalore against the Order-in-Appeal No. 779/98-C.E. dated 21-10-98, passed by the Commissioner of Customs and Central Excise (Appeals), Bangalore. The appellants had cleared Granite Polished Slabs under a bond for export, but due to an accident, the goods were not exported. A show cause notice was issued to them, and duty was demanded on the goods not exported. The appeal before the Commissioner (Appeals) was rejected. The Department relied on previous Tribunal decisions to support the duty demand on goods cleared without payment of duty and not exported. The Tribunal confirmed the duty demand, stating that once goods are cleared without payment of duty under bond and not exported, duty cannot be remitted. Citing precedent cases, the Tribunal held that duty waiver is not claimable if goods are destroyed after clearance and before export. Consequently, the appeal was rejected.

This judgment highlights the importance of complying with duty payment and export requirements for goods cleared under bond to avoid duty demands on goods not exported due to unforeseen circumstances.