1999 (2) TMI 210 - AT - Customs

Summary

Issues involved:
Whether Customs duty is payable on the quantity of Tin Mill Black Plate Coil (TMBP Coil) cleared in excess of the quantity specified in the Ad hoc exemption Order under Section 25(2) of the Customs Act.

Detailed Analysis:

Issue 1: Customs duty liability on excess quantity cleared
The appeal questioned the demand for Customs duty on the excess quantity of TMBP Coils cleared by the appellant beyond the quantity specified in the Ad hoc exemption Order. The Assistant Collector confirmed the duty demand, holding that the excess clearance was not within the Customs jurisdiction to question the allocation by SAIL. The Collector of Customs (Appeals) upheld this decision, stating that the appellant was not entitled to claim exemption as it was SAIL that was granted the exemption under the Order.

Issue 2: Legal basis of appellant's claim
The appellant argued that they acted upon the allotment order received from SAIL and had already paid duty and taken delivery of most materials. They contended that the Executive Authority's review of the allotment was unlawful, citing the doctrine of promissory estoppel. They also relied on legal precedents to support their claim that duty is determined based on the rate in force at the time of filing the Bill of Entry.

Issue 3: Authority's power to review allotment
The appellant contended that after the Ad hoc exemption Order expired, the authority had no power to reassess or issue notices. They argued that they had become the owners of the goods and were entitled to claim the exemption. They also emphasized the right to appeal as a substantive right and criticized the lack of grounds in the show cause notice.

Issue 4: Respondent's position
The Respondent argued that the excess clearance of TMBP Coils beyond the specified quantity was subject to duty as per the Ad hoc exemption Order. They cited legal precedents to support the assessment of duty as per the law without any estoppel. They contended that the Customs Department was not bound by any promise between the appellant and SAIL and that there was no fundamental right for the appellant to claim exemption.

Judgment:
The Tribunal noted that the appellant had cleared an excess quantity of TMBP Coils beyond the specified allotment, leading to the demand for duty. It emphasized that Customs clearance could only be granted for the specified quantity in the Order, and any excess quantity would be subject to full duty without exemption. The Tribunal found the show cause notice proper, mentioning the grounds for duty demand, and affirmed that the duty was assessed at the applicable rate as per the Customs Act. Ultimately, the Tribunal rejected the appeal, stating that there was no reason to interfere with the impugned order based on the facts and circumstances presented during the proceedings.