1999 (10) TMI 232

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..... s was claimed. The importer, however, did not clear the goods under this bill of entry, apparently for the reason that the permission of the Development Commissioner, Free Trade Zone, a prerequisite for availing of the notification had not been granted. The importer therefore made a request to the department for clearing the goods for home consumption and for conversion of the into-bond bill of entry into a bill of entry for home consumption. The permission was granted and the bill of entry for home consumption, which was filed two days later, was assessed to duty. The importer still did not clear the goods, which continue to lie in the custody of the port trust or its agent. In May, 1998 it made a request for permission to file an into-bon .....

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..... duty is payable on goods, under Notification 13/81, no interest would be payable, and there is no loss of revenue. Interest in any case has to be distinguished from revenue. The intention initially was to use the goods in the 100% export oriented unit. It is only for want of permission of the Development Commissioner they could not be so used. 3. The appeal specifically mentions revenue as a factor. However, the question of interest will not arise unless there is revenue to be paid. It is also not possible to agree that the provisions of sub-section (5) of Section 46 will not be attracted if interest is involved, and not the duty involved. We are unable to see that interest on revenue payable is not, for the general purpose of the descri .....

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..... policy now permits import of these goods without any permission from the Development Commissioner, and consequently intent to avail of these notification, therefore, appear to us have any relevance to the issue. Sub-section (5) of Section 46 itself requires, before request for conversion of a home consumption bill of entry into a warehousing bill of entry or vis-a-vis is considered and that the interest of revenue are not prejudicially affected. We are unable to see how this requirement is offset merely because goods will be used for export promotion. The Commissioner has not considered this aspect and has only been persuaded by the claim that there has been demurrage incurred by the importer and the imported goods are to be utilised for e .....

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