9911796707
TMI Blog2001 (3) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... wo duty free advance licences viz. Licence No. 03012093, dated 31-7-1996 and Licence No. 0301382, dated 16-10-1996 under DEEC Scheme. The applicant imported and cleared raw-materials such as Piperazine, EMME and CFA without payment of customs duty on the condition of fulfilment of export obligation as laid down in the said licences. However, due to steep fall the international prices of the bulk drugs and subsequent cancellation of the export orders, the applicant could not fulfill the required export obligation. As the said pharmaceutical formulation has a given shelf-life and could not be stored for very long or for such time till the conditions in the international market improved, the applicant had no option but to sell the manufactured goods in .. 3. After investigation into the matter, the DRI issued a show-cause notice bearing No. DRI/BZU/G/8/99, dated 21-10-1999/3-11-1999 to the applicants demanding from them duty amounting to Rs. 87,80,811/-. 4. The applicants filed an application, dated 15-2-2000 17-11-2000 under Section 127 B of Customs Act, 1962 before the Additional Bench of Settlement Commission, Mumbai, for the Settlement of their case. In their application, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 issued by DRI in respect of show cause notice, dated 21-10-1999/3-11-1999, the learned Advocate submitted that the applicant would file an amended application within a week s time. 10. The Departmental Representative drew attention of the Commission towards the issues to be settled as prayed by the applicant in para 3 of the Statement of Facts in Brief enclosed to Settlement Application, dated 15-2-2000 and stated that the same were not prayers or relief sought for but were in nature of questions put to the Commission on various immunities without a formal request for granting such immunities. He further stated that there was no additional amount disclosed by the applicant because the DEEC Book referred to the liability of duty of Customs specified thereon in case of non-fulfilment of export obligation. The Commission clarified that the additional liability was with reference to assessment made in bills of entry at the time of import and the terms case and assessment had been defined in the Customs Act, 1962. The Departmental Representative after perusing the said definitions admitted that nil assessment was also included in the definition of the term assessment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e application filed including the amended applications, the report of the Jurisdictional Commissioner and that of the DRI and after considering the facts and circumstances as available in the case records allowed the application to be proceeded with under Section 127C (1) of Customs Act, 1962 and ordered the amount deposited to be adjusted towards duty liability as accrued under sub-section (3) of Section 127C of Customs Act, 1962. 17. The applicant vide miscellaneous application dated 23-8-2000 submitted a list of prayers/immunities sought for from the Commission. 18. The applicant vide their letter dated 14-9-2000 informed the commission regarding payment of Rs. 2 lakhs. Thus the total amount paid by the applicant equals to Rs. 89,98,379/-. 19. Shri Vijay P. Thakkar, Managing Director of M/s. Tasc Pharmaceuticals Ltd., Mumbai and also a co-noticee in the instant show cause notice filed an application dated 17-11-2000 as a co-noticee. 20. The Commission after examining the records of the case had directed the Commissioner (Investigation) as under :- (1) The duty liability appears to have been quantified on the basis of partial fulfilment of export obligation. The b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26. The learned Advocate submitted a written submission, dated 2nd Jan., 2001. The same has been taken on record. It was submitted that they imported raw materials under Licence No. 03013821, dated 16-10-1996 under various Bill of Entries and under Licence No. 03012093, dated 31-7-1996, the applicant has admitted a duty liability of Rs. 87,98,379/- whereas the duty demanded in the Show Cause Notice is Rs. 87,97,561/-. The applicant further submitted that they have deposited Rs. 2 lakhs as submitted by the Applicant in the earlier hearing. Out of one License export obligation to the tune of 71.3% has been discharged; that due to steep fall in the international prices of bulk drugs, they could not export any further. It was further submitted that they applied for extension of time limit to DGFT with reference to Notification No. 149/95, dated 19-9-1995 and sought clarification whether the Bank Guarantee already lying with the customs would be considered but before they could get a reply DRI searched their premises on 10-6-1999. The goods were sold in the domestic market due to limited shelf life of the goods that they could not be stored indefinitely. The Applicant had no mala fide i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extended period. The Applicant has been granted extension two times. The Revenue drew the attention of the Commission to para 3 (g) of the Show Cause Notice dated 3-11-1999 and Para 4(c) wherein in it is mentioned that; the Advance Licence No. 03013821 was initially valid up to 16-10-1997 and further extension was granted two times and was finally valid till 16-4-1999. Advance Licence No. 03012093 was finally extended up to 31-1-1999 after extending validity period twice. 38. The Revenue further submitted that at the time of recording statements no evidence was produced by the Applicant regarding the shelf life or the impurity factor or the fall in prices etc. 39. The Commission asked the Revenue whether any enquiry or any investigation was made to find out why the firm has been only importing and clearing in the local market ? 40. The Revenue submitted that these are not prohibited goods and that since the party agreed to pay duty they accepted it and they have not done any investigation, nor has the Applicant submitted evidence regarding the shelf life of the goods. 41. The Revenue submitted that the duty as per show cause notice is correct and that the Govt. revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the records and reports of the Revenue and the report of the Commissioner (Investigation) of Settlement Commission, the Commission gave an opportunity to the applicant and the Revenue to be heard. Final hearing was held on 2-1-2001. 52. The Commission considered the facts and circumstances of the case and passes the following terms of settlement under the provisions of Sub-Section (7) of Section 127C of Customs Act, 1962. (i) Duty liability : The Commission is satisfied that the applicants have made full and true disclosure of the duty liability and they have already paid the admitted duty liability. (ii) Penalty and Prosecution : The Settlement Commission is satisfied that the applicants have co-operated with the Commission in this proceedings and have made a full and true disclosure of their duty liability. In this view of the matter the Commission grants immunity from prosecution to the applicants under the Customs Act, 1962. The Commission also grants immunity under the Indian Penal Code (45 of 1860). (iii) Interest : As discussed elsewhere in this order the applicants submitted that Rs. 2 lakhs was deposited to cover the provisions of interest if any to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) Notification No. :- 149/95 (4) Effective dates :- From the date of clearance of the said material to date of payment/or Encashment of Bank Guarantee or by deposit. SR. NO. B/E NO. DUTY PAYABLE (Rs.) DATE OF CLEARANCE DATE OF PAYMENT PERIOD INTERST 1 2058/ 122 3,05,529/- 21-8-1996 6-9-1999 36 months 16 days 92998 22-8-1996 2 2019/ 286 3,12,092/- 21-8-1996 6-9-1999 36 months 16 days 94996 23-8-1996 3 2306/9 1,64,186/- 3-9-1996 6-9-1999 36 months 3 days 49391 5-9-1996 4 2695/22 42.621/- 23-10-1996 6-9-1999 34 months 14 days 12239 28-10-1996 TOTAL 8,24,428/- 2,49,624/- SR. NO B/E NO. DUTY PAYABLE (Rs.) DATE OF CLEARANCE DATE OF PAYMENT PERIOD INTERST (Rs.) 1 2695/22 1,70,482/- 23-10-1996 11-6-1999 31 months 19 days ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
