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TMI Blog1997 (3) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... uced herein below : NOTICE TO SHOW CAUSE ``To M/s. Vam Organic Chemicals Ltd. Gajraula District Moradabad M/s. Vam Organic Chemicals Ltd., Gajraula have imported the Stainless Steel Plates from Japan of the description as mentioned below : - 1. Vessel Name -RAMO NEVERETT - Invoice No. NMM033/3 dated 2-5-1980-Bill of Lading No. Y2/C dated 28-4-1980 Bill of Entry No. 388/80 dated 11-6-1980-Bond No. 1853 of 1980. I. Stainless Steel Plates, Hot Rolled - Annealed and Prickled No. 1 Finish (Alloy Steel containing more than 0.5% Chrom.) (i) Grade AISI-304 8.0X1500X3500 mm = 30 Pcs. weighing 10.303 M.T. (ii) Grade AISI-316 6.0X1500X3500 mm = 32 Pcs. weighing 8.265 M.T. Value Rs. 4,20,272.97 2. Stainless Steel Plates, Hot Rolled, Annealed and Prickled No. 1 Finish (Cold rolled) Grade AISI-316 5.0X1500X3500 mm = 70 Pcs. weighing 15.266 M.T. Value Rs. 4,52,212.56 II. [Vessel] Name-RAMOVERERETT - Invoice No. NMMO33(8) dated 19-5-1980Bill of Lading No. Y-8-C dated 17-5-1980-Bill of Entry No. 423/80 dated 23-6-1980-Bond No. 2001 of 1980. Stainless Steel Plates Hot Rolled, annealed and pickled No. 1 Finish, AISI-316. 5.0Xl500X3500 mm-60 Pcs. weighing 13.028 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 28 of the Customs Act, 1962. Section 28 provides that a show cause notice should be issued within 6 months from the date on which the duty had been paid or short levied. It is stated by them that as the duty had been finally determined by the Superintendent of Customs on 24-2-1982, therefore, the demands are barred by time. The Assistant Collector in the Order-in-Original had rejected the plea of time bar on the ground that the goods had been cleared on Ex-bond bills of entry as per the provisions of Notification No. 150/81-Cus., dated 22-5-1981 on execution of Bond and furnishing Bank Guarantee for the differential amount of duty, if any. He has held that in the instant case the assessment cannot be regarded as final assessment. The assessment could have been finally made only after the end use certificate is furnished by the importer and is accepted by the Assistant Collector and the Bond and Bank Guarantee released to the party. He has noted that the bank Guarantee were released by the Assistant Collector of Central Excise, Division II Ghaziabad vide his letter C. No. V(30) 52-Bond/82/8373 dated 11-8-1983 while the show cause notice was issued and was served on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention that the Bond executed under the Notification is not the same as the one executed under Section 51 for the warehouse purpose, which have been entered for warehousing and assessed to duty under Section 17 or Section 18 of the Act. The Learned DR submitted that this assessment was in terms of the Section 18 of the Act and the Bond was in terms of proviso of the Section 18, by which the importer had undertaken to produce the end use certificate in terms of Notification and therefore, failure to produce the said certificate in terms of the Bond, disentitles the importer from the benefit of the Notification. He contends that the `relevant date should be reckoned from the date of discharge of the Bond or from the date of adjustment of the duty after final assessment in terms of sub-section 3(b) of the Section 28 of the Act. The Learned DR relied on the ratio of the judgment rendered in the case of Castrol Ltd. v. Collector of Central Excise, as reported in 1985 (20) E.L.T. 102. 6. We have carefully considered the submissions made by both the sides and have perused the orders. The original authorities have held that the proviso to Section 28 is attracted to extend larger perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecution of a bond in such form and for such sum as may be specified by the Assistant Collector of Customs, bind himself to pay, on demand, in respect of such quantity of Di-Ammonium Phosphate or Ammonium Nitro Phosphate in question as is not proved to the satisfaction of the Assistant Collector of Customs to have been used for the aforesaid purpose, an amount equal to the duty of customs leviable thereon under the said First Schedule on such quantity, but for this exemption. The Tribunal also noted the terms of the Bond executed by the importers which had stated : - We agree to pay on demand in respect of such quantity of Di Ammonium Phosphate as is not proved to be satisfaction of the Asst. Collector of Customs, to have since been used for the said purpose an amount equal to the duty of customs leviable thereon under the first Schedule of Customs Tariff Act, 1975 on such quantity. 8. After noting this provisions the Tribunal held that the above portion of the terms of the bond and the Notification reproduced in the order, left no manner of doubt that the assessment in the respondents case was provisional assessment of duty under Section 18 of the Customs Act, 1962 and as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual to the difference between the duty leviable on such quantity but for the exemption contained herein and that already paid at the time of importation. 11. In terms of the said proviso (e) of the Notification, the importer executed the bond and in the bond they have undertaken to pay the amount on becoming due on them under the bond. It was contended before us that this bond had not been executed in terms of the Notification and proviso (3)(b) of Section 28 of the Act. We are not impressed with this submissions because we notice from the bond that importer had bound themselves and the Preamble stated that they had applied to Assistant Collector of Customs Central Excise, Division II, Ghaziabad for obtaining permission for manufacture under bond at Gajraula for the goods, which details are stated in detail at page 2 of the bond, which has been extracted in the show cause notice and already reproduced in the order. In sum the ratio of the citation in the case of Indian Potash Ltd. is identical and we do not find any reason to differ with the same. We have to hold that the demands have been raised within 6 months from the relevant date for computing limitation and it is the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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