9911796707
TMI Blog1999 (1) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... renewed from time to time, were importing the raw material D-Alpha Phenyl Glycine, Aceto Acetic Ethyl Ester and Isopropyl Alcohol and used as input to their finished product Dane s Salt of D-Alpha Phenyl Glycine for 100% export under OGL, availing the exemption benefit of non-payment of duty of Customs under Notification No. 13/81-Cus., dated 9-12-1981 as amended from time to time. 2. The Appellants imported 6000 kgs of D-Alpha Phenyl Glycine under Bill of Entry No. 12733/30-11-1988 Bombay Port and warehoused there on 12-12-1988. It was transported in entirety under bond as per Section 67 of Customs Act, 1962 vide Bill of Entry 5/88-89, dated 15-12-1988 and Bond No. same as above, executed under Section 59(1) of Customs Act, 1962. Wareho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial was to be utilised within a period of one year for which they undertook in the event of their default in making clearance of the said imported raw material within the stipulated period of one year set out under the condition specified therein, the same would be liable for confiscation under Customs Act, 1962 under Section 111(j) and (o). In contravention of Section 71 of Customs Act, 1962, appellant render themselves liable for penal action under Section 112 of Customs Act, 1962. Goods is already utilised in the manufacture of final product which is already exported. As per Section 61(2) of Customs Act, 1962, the imported rate material remained in bonded warehouse beyond the stipulated period attracts liability to pay interest @ 18. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al available on record, impugned order was passed confirming the demand as per show cause notice, and penalty of Rs. 30,000/- was imposed on the appellant on 12-1-1994 by the Respondent. Hence this appeal. 3. In support of the appeal, Shri Prakash Shah, the learned Counsel for the Appellant has argued that under Notification No. 13/81 for 100% EOU import is permitted free of duty on condition that raw material should be consumed within one year. There is no time limitation to apply for extension. Failure to do so is only a technical breach. No mala fide are shown. Raw material is used in manufacture and final products are exported. There is substantial compliance of Notification. There is no suppression at all. Monthly returns and bond re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pray for extension of time for warehousing the raw material beyond the permitted one year; on the ground they were under SRP scheme and it was their fundamental responsibility to do so as they are governed by Chapter IX of the Customs Act, 1962 under Section 57 to 73 Act. Even though they were working under 100% EOU scheme, and Customs duty on raw material were fully exempted under Notification No. 13/81. Appellants by their letter dated 23-11-1987 have requested for permission for self removal procedure, and Additional Collector of Central Excise and Customs, Vadodara has granted it under the letter dated 8-2-1988, for all the bonded goods. In view of this position, the Appellant could not have allowed their balance raw material unauthor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond the permitted one year without applying for extension of permission, even after executing the bonds, and clearing them, and used in manufacture of final product and exported it. Of course, it is before the issue of show cause notice. The Appellant has admitted this aspect, as evident from the impugned order, In the arguments now it is contended as only a technical breach/minor lapse. Condition No. 2 of the Notification No. 13/81-Cus., 9-2-1981 states that the importer carries out the manufacturing operation in customs bond and subject to such other condition as may be specified by the Assistant Commissioner of Customs in this behalf . 7. Even as per the appellant one of the condition under the Notification is to consume the raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
