9911796707
TMI Blog2006 (3) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant was allowed clearances from Bond 2328.149 MT of PARAXYLENE and under the second-mentioned licence it was allowed clearance of 1260 MT of PARAXYLENE from Bond from the consignments imported by it through Kandla/Mumbai Ports in the years 1995, 1996 and 1997. The said goods were cleared free of duty under Ex-bond Bill of Entry No. 1426 and No. 1427 both dated 9-3-2000 under the said advance licence dated 25-2-2000 and under Ex-bond Bill of Entry No. 3 dated 21-8-2000 under advance licence dated 20-4-2000. Exemption for all the consignments was claimed in terms of exemption notification no. 30/97-Cus., dated 1-4-1997 and Notification No. 18/00-Cus, (Sr. No. 32) dated 1-3-2000. Though the trial production started in April, 2000, the plant could not take off due to financial problems. Efforts made for revival have not yielded results so far. 2. This led to non-fulfilment of export obligations on time under the aforesaid advance licences and consequent demand of customs duty with 15% interest by the DGFT authorities vide SCN dated 11-9-2003 read with letter dated 14-8-2005. 3. It is also understood that the Kandla Customs have also raised a SCN on the applicant importer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR) Cell for a rehabilitation package. He also submitted a judgment of the Hon'ble Gujarat High Court passed in the case of Padmavati Tubes v. UOI reported in 2005 (183) E.L.T. 422 (Guj), wherein, payment was allowed in 22 instalments on account of financial hardship, setting aside the order of the CESTAT for pre-deposit. 6.2 The Bench asked the Revenue to give their view on the prayer of the applicant on instalment. Revenue submitted that the applicant s unit was closed since long and therefore its financial condition, cannot be ascertained. The Bench then directed the applicant to submit a copy of their last Balance Sheet and details of the case before the CDR. 6.3 With regard to the prayer for adjusting the CVD part of the admitted duty liability through CENVAT credit which is available with the applicant, the Revenue objected to such adjustment stating that there is no provision under the CENVAT Rules for payment of CVD through CENVAT credit. 6.4 The Bench then raised a query as to whether the duty admitted by the applicant in the two applications filed by it is correct or otherwise. The Revenue could not provide a reply. The Bench then directed the Revenue to submit its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification No. 30/97-Cus., against the advance licence No. 0310020454/3/03, dated 25-2-2000 and DEEC Book No. A014622 dated 23-2-2000 in terms of para 7.4 of the EXIM Policy 1997-2000. 8.4 Chief Commissioner of Customs Central Excise granted extension of Bond period till June 1999. Thus, the goods remained warehoused without the permission of Chief Commissioner during the above period. The bonding period in respect of the goods had expired on 30-6-1999 and accordingly, importer was liable to pay customs duty at the applicable rate on 1-7-1999, as this date was to be considered as the date of deemed removal and therefore, the importer was not eligible for exemption under notification no. 30/97-Cus., as the licence was not in existence when the bonding period expired. 8.5 In view of the foregoing facts a SCN demanding duty and interest was issued to importer on 3-9-2003. Importer vide his written reply dated 3-2-2004 disputed departments claim requested for personal hearing. The department was in the process of granting personal hearing and adjudicating the SCN, importer vide his Counsel s letter dated 28-6-2005 requested for keeping the Show Cause Notice in abeyance as he wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such capital goods are removed as such; or (d) an amount under sub-rule (2) of Rule 16 of Central Excise Rules, 2002; or (e) service tax on any out put service;................................... . 10. The Revenue [CC(EP), NCH, Mumbai] vide report dated nil received on 30-11-2005 in terms of 127C(1) of the Act had stated that the total duty saved on 1260 MT PARAXYLENE cleared by the applicant vide Ex-bond Bill of Entry at Mathura needs to be confirmed by Central Excise, Mathura. On instalment and exact amount of duty and additional duty from the Cenvat credit account, the Commissioner has left it to the Bench. The immunities from interest and penalty have, however, been opposed on the grounds that (a) interest, the applicant is bound to pay under Section 28(1) of the Act (b) penalty, the applicant does not deserve dispensation, it having obtained the licences fraudulently and having not used the inputs for the intended purpose. 11. The Bench has gone through the records and the submissions made on behalf of the applicant and the Revenue. Prima facie the Bench is satisfied that the conditions prescribed under sub-section (1) of Section 127B of the Act are satisfied in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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