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TMI Blog2002 (10) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... btained an Advance Licence No. 08000097 dated 22-8-97 under DEEC Scheme for import of 206 MTs of Polyester Chips and 2 MTs of Spin Finish Oil. Applicant had cleared these goods under Release Advice No 157/AHD-MUM/42-87/98 dated 6-8-98 after executing a Bond supported by Bank Guarantee of total amount of Rs. 28,18,913/- in terms of the condition of the licence and DEEC Book No. 219116. The applicant had to fulfil an export obligation of 200 MTs. of POY however the applicant could not fulfil the export obligation fully. 3. A Show Cause Notice was issued to the applicant demanding duty of Rs. 13,61,638/- on excess import of Polyester Chips of 119662.92 Kgs. along with interest @ 24% up to 31-7-2000 amounting Rs. 6,49,110/-. The Bank Guarante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand by the Revenue in their Show Cause Notice for Rs. 20,10,746/- [i.e. Rs. 13,61,637/- + Rs. 6,49,109/- (interest)]. However, it was submitted that the applicants are ready and willing to admit the entire demand of the Revenue vide their Show Cause Notice for Rs. 20,10,746/- and prayed for grant of immunities. 10. The Revenue was represented by Shri Pratul Tiwary, Appraiser of Customs, Ahmedabad. 11. The ld. Representative of the Revenue submitted a written submission dated 27-9-2002 and drew the attention of the Commission to the Board s Circular No. 53 dated 20-8-2002. It was further submitted that although the applicants have admitted the interest portion also during the course of the final hearing, it is left to the Commission to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission. (2) Interpretation of provisions under Section 127B of the Customs Act, 1962. (3) Judicial pronouncements already available in relation to laws of Settlement Commission in the Income-Tax Act as amended from time to time as the laws of settlement for both are para materia. (4) Ratio of case laws on levy, collection and assessment of duty of customs as decided by Tribunal, Hon ble Supreme Court etc. from time to time. 15. The basic object of Settlement Commission in Income Tax side has been laid down by Wanchoo Committee, which inter alia has observed as below : Settlement machinery This, however, does not mean that the door for compromise with an errant taxpayer should for ever remain closed. In the adminis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etail the provisions of Section 127B of the Customs Act, 1962 vis-a-vis provisions of Section 245C of the Income-tax Act, 1961. 18. In the case of D.C.M. v. Union of India [1999 (109) E.L.T. 12 (S.C.)], the Hon ble Supreme Court has examined the relevant date for determination of duty of Customs. On the issue of relevant date for payment, the decision of the Hon ble Supreme Court in the case of Union of India v. Apar India Ltd. [1999 (112) E.L.T. 3 (S.C.)] was also referred to by the Commission. In other words, the liability to tax arises as soon as the bill of entry for home consumption is assessed. Whether such assessment is conditional to fulfilment of the conditions stipulated in any notification is not material for the purpose of lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... too is held entitled to seek relief under Section 20(2) of the Act. 19. From the provisions in the format it is apparent that the additional duty liability is with reference to duty assessed and paid in the bill of entry/shipping bill and not in other declaration, guarantee, bond etc. which might be a requirement to ensure intended use/compliance of law. It is apparent that, the liability has to be determined with reference to duty levied and collected under the bill of entry and conditions attached at the point of clearance is a case of concessional assessment is of no consequence. Further, the attention of the Commission has been drawn to the case of M/s. Ganapathy Smelters Ltd. wherein the Revenue has filed a writ petition before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lier admitted amount of Rs. 18,75,764/- has been allowed to be adjusted by the Commission from the amount of Rs. 28,18,913/- which was recovered by the Revenue by encashing the Bank Guarantee executed by the applicant. The Commission had also ordered for adjustment of Rs. 2,75,470/- to be adjusted from this amount of Rs. 28,18,913/- in the case of another application filed by the same applicant for its another Licence No. 08000108 dated 28-8-1997. That means after adjusting the earlier admitted amount of Rs. 18,75,764/- for this application and Rs. 2,75,470/- for the second application as referred supra, it is seen that there is still a balance of Rs. 6,67,679/- from the amount already encashed from the Bank Guarantee. Now when the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X
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