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TMI Blog1988 (2) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be imposed on them under Rule 173-Q of the Central Excise Rules and why duty on the goods should not be recovered from them under Rule 9(2). The show cause notices claimed that Rule 12 of the Central Excise Rules relates to the export of excisable goods under claim for rebate and Rule 13 to the export of such goods in bond. Rule 12 grants rebate and is the relevant rule under which the rebate may be granted, while Rule 13 prescribes export of goods under a bond without paying duty. But the Assistant Collector said that Rule 13 was essentially a procedure and has no provision for grant of exemption from duty when the goods are exported, or to grant any rebate. Rules 12,12-A, 13,14 and 14-A prescribe that the procedural relaxations ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is-declaration of any kind in their export. The goods were shipped with the full knowledge of the Central Excise authorities and before the shipment, they had to execute a bond under Rule 13 to secure the duty. They had given and made all necessary declarations and nothing was concealed or kept from the officers. In fact, the shipments started at the factory with the clearances and examinations by Central Excise Officers; there was not one thing that could have been hidden or that could have remained unknown to the officers who cleared their goods for export. In these circumstances, it is incorrect for the Collector to charge them with contravening provisions of Rule 9(1) read with Rule 173-G of the Central Excise Rules, and to say that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the six months period allowed for a demand notice of this kind. In all the others, the gap is much more than this. The Collector, however, proceeds on the ground that the assessees were fully aware of their obligations under the law as represented by-Notification No. 215/62 and they never pleaded that they were not aware of this. Yet they deliberately chose to misconstrue it to take undue advantage by exporting goods under a bond without payment of differential duty. He then writes: It is not that they were not aware of the legal requirements; their claim is that they were legally entitled not to pay any differential duty when the goods were exported by them under bond. It is, therefore, not a case of any mistake or omission but a delibe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise did not know is a confession of ineffectuality that is truly horrifying. It might be true that the Central Excise did not know what they needed to know that the shipment should have been under rebate and not under a bond; but on that I would have no comments except to say that you cannot blame the factory for it. 5. They are said to have deliberately misconstrued the law to take undue advantage by exporting goods under a bond and that it was not that they were not aware of their requirements and that this was a deliberate attempt to evade payment of duty. Nothing could be farther from the truth. Exporting under a bond when they knew about Notification 215/62 is not a deliberate attempt to take undue advantage or to evade paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Collector imposes no penalty; but taking a lenient view, he refrained from imposing any penalty on them. This is a jarring note in the narration and conclusion of events. If the exporters by willful design, fully aware of their obligations, evade legitimate dues and deliberately contravene the law in order to escape payment of tens of millions of rupees, the least one expects an adjudicating Central Excise Collector to do is to impose a penalty that will deter not only that shipper but all other like-minded assessees. It cannot be that the Collector in sending a message to such people that they need have no fear from him for similar evasion and deliberate contravention. It can only be that he does not really himself believe that there wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only a rebate of a certain value. In his adjudication the Collector quotes the assessees submissions that their exports took place with the full knowledge and approval of the departmental officers, and even bonds executed for the export of excisable goods were subsequently discharged to the satisfaction of the competent authorities. The Collector agreed with this and said that the allegation that the goods were exported with the intention to evade payment of duty was not proved and that accordingly the demand in this case which is more than six months old compared to the issue of the show cause notice shall be barred. (sic). 8. The circumstances are exactly the same. But this order of 26-7-1983 is a later order. We can say there has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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