1996 (2) TMI 299 - AT - Customs

Summary

Issues Involved:
1. Jurisdiction of the authority issuing Show Cause Notices.
2. Limitation period for issuing Show Cause Notices.
3. Eligibility for concessional rate of duty u/s Notification No. 345/86.
4. Validity of the import and liability for confiscation.

Summary:

1. Jurisdiction of the Authority Issuing Show Cause Notices:
The appellants contested the jurisdiction of the Collector of Central Excise, Bombay-III, who issued the Show Cause Notices. The Tribunal held that the Collector of Central Excise, Bombay-III, was not the "proper officer" u/s 2(34) of the Customs Act, 1962, as he was not assigned the function of collecting customs duty. The Show Cause Notices issued by him were deemed without jurisdiction and invalid. However, the notice issued by the Collector-II of Customs and Central Excise at Pune was held valid as he fell within the category of "proper officer."

2. Limitation Period for Issuing Show Cause Notices:
The Tribunal noted that the Show Cause Notices in Appeal Nos. C/486/95 and C/491/95 covered periods entirely beyond six months, making them time-barred. For Appeal No. C/480/95, part of the demand was within the normal period of limitation. The Tribunal found no evidence of suppression or misdeclaration by the appellants to justify invoking the extended period of limitation. Consequently, the demands beyond the normal period were held as time-barred.

3. Eligibility for Concessional Rate of Duty u/s Notification No. 345/86:
The main issue was whether the appellants were entitled to a concessional rate of duty for Aluminium Foils used in manufacturing Mixed Dielectric Capacitors. The Tribunal considered expert opinions and definitions from authoritative sources, concluding that Mixed Dielectric Capacitors fall within the ambit of Plastic Film Capacitors. Therefore, the appellants were entitled to the concessional rate of duty u/s Notification No. 345/86.

4. Validity of the Import and Liability for Confiscation:
Given the findings on merits, the Tribunal held that the imports could not be deemed unauthorized, and the goods were not liable to confiscation u/s 111 of the Customs Act. Consequently, the issue of the validity of the notice u/s 124 of the Act did not survive.

Conclusion:
All appeals were allowed, and the orders appealed against were set aside, with consequential reliefs to follow.