9911796707
TMI Blog2000 (10) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of receipt of tyres and tubes under Chapter X procedure without payment of duty. The said notification was superseded vide Notification No. 14/86-C.E., dated 7-2-1986 withdrawing the facility of Chapter X procedure in respect of tyres and tubes, used for saloon cars. The said Notification No. 14/86 was also superseded vide Notification No. 42/86-C.E., dated 10-2-1986 which was subsequently amended by Notification No. 100/86, dated 20-2-1986. 2. Inasmuch as the appellant received the consignments of tyres and tubes in question after 7-2-1986, Revenue has raised demands of duties of Rs. 11,99,280/- against the appellant on the ground that after 7-2-1986 the facility of receipt of tyres and tubes under Chapter X procedure was not in exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of balance five consignments of tyres issued by M/s. Tyre Corpn. (I) Ltd., Shri J.P. Khaitan argued that the said consignment was cleared by M/s. Tyre Corpn. under a mistaken belief that the exemption continued to be available. In such cases demand should have been raised against the consignor and the same cannot be raised against them under Rule 196 inasmuch as they had used the tyres and tubes in the manufacture of saloon cars. That is the purpose for which the same were procured by them under Chapter X procedure. Shri Khaitan submits that in fact, the demands were raised against M/s. Tyre Corpn. and was confirmed by their jurisdictional Central Excise authorities as is evident from letter dated 7-2-1990 written by M/s. Tyre Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a post-clearance condition and there is nothing in the notification to suggest that the tyres and tubes must have been received by the consignee or must have been used by them in the manufacture of saloon cars before the withdrawal of the exemption notification. The exemption is applicable and available at the time of clearance of the goods from the factory of the manufacture and not thereafter. As such we hold that as the notification was in existence at the time of clearance of the 13 consignments, no duty could be legally demanded from the appellants in respect of the said consignments, though the same were received by them after the notification was rescinded. 8. We also find that the trade notice issued by the Calcutta Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the same. Inasmuch as the issue has also been clarified by the Revenue in favour of the appellants, we see no reasons to differ from the said clarification, in view of our discussions in the preceding paragraphs. 9. As regards the demand of duty in respect of 5 consignments which have been cleared by M/s. Tyre Corpn. after exemption was withdrawn we agree with the ld. adv. that the demand cannot be made under Rule 196 against the appellants inasmuch as the demand under the said rule is made in respect of goods not duly accounted for as having been used for purpose and in the manner stated in the application made under Rule 196 for permission to obtain goods under Chapter X procedure. The demand in such cases, when the clearances ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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