9911796707
TMI Blog2013 (4) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the factory as scrap, in our view, it should be considered to be a DTA clearance by the EOU attracting Central Excise duty. It was not clearance of the capital goods as such from the factory. Therefore the payment of Central Excise duty by the assessee at the time of clearance of the scrap to M/s. SJCM cannot be faulted. The Department has no case that there was short-payment of this duty by the assessee. - entire demand is beyond the normal period of limitation - Decided in favor of assessee. - C/270-272/2007 - FINAL ORDER NOS.445-447/2012 - Dated:- 13-6-2012 - P.G. Chacko And M. Veeraiyan, JJ. Appellant Rep by: Mr S. Viswanath, Adv. Respondent Rep by: Mr M.M. Ravi Rajendran, AR. Per: P G Chacko: The firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duties. However, KCL on 22.7.2002 requested the Deputy Commissioner of Central Excise, Guntur, to permit destruction of the obsolete machinery, which was allowed on 28.7.2002. Accordingly, in the presence of the Superintendent and other officers of Central Excise, the machines were dismantled in KCL's factory. Later on, KCL sold the scrap for Rs. 50 lakhs to one Shri Jayalakshmi Cotton Mills (SJCM, for short) and cleared it on 8.10.2003 on payment of Central Excise duty of Rs.5,17,869/- equal to Customs duty. This fact along with the manner of computation of duty was intimated to the Assistant Commissioner of Central Excise, Guntur on 28.10.2003. The duty was worked out in KCL's letter dated 28.10.2003 to the Assistant Commissioner, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Customs Duty @ 5% ad valorem under G.O.I. Notification No.21/2002-Cus, dated 1.3.2002 as amended; that the goods are also chargeable to Additional Duty @ 16% ad valorem being classifiable under 8445.00 of Central Excise Tariff Act, 1985 and are also leviable to Special Additional Duty of Customs @ 4% ad avlorem under Notification No.23/2002-Cus, dated 1.3.2002 and accordingly, M/s. KCL is required to pay the duties of Customs aggregating to Rs.52,61,941/-, in terms of Section 12 of the Customs Act, 1962 and as detailed in the Annexure enclosed to and forming part of this notice; (ii) M/s. KCL are liable to pay the Customs duty of Rs.52,61,941/- on the assessable value of Rs.1,97,28,330/- (Total value = AV + BCD + SAD i.e. Rs.2,40,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under seizure are liable for confiscation to the Government of India, under Section 111 of the Customs Act, 1962 inasmuch as the aforesaid goods were not utilized for the intended purposes stated at the time of their import, without payment of Customs duties in contravention of the conditions of notification No.13/81-Cus and the terms and conditions of the B-17 bond dated 3.7.2000 executed by M/s. KCL with the Deputy Commissioner of Customs Central Excise, Guntur Division, Guntur and were cleared without appropriate permission from the Customs and VEPZ Authorities and without payment of appropriate duties of Customs, in contravention of the provisions of Section 68 and 71 of the Customs Act, 1962 and the terms and conditions of notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material period of this case, had concerned themselves with concealment, transport and clearances of the aforesaid 2 (two) autoconers without payment of appropriate duties of Customs and in contravention of the provisions of Sections 68 and 71 of the Customs Act, 1962 and in contravention of the conditions of notification No.13/81-Cus and the B-17 bond dated 3.7.2000 as detailed supra by reasons of which, they knew or had reason to believe that the aforesaid goods are liable for confiscation under the provisions of the Customs Act, 1962 and thereby, it appears that Shri Anil Kumar Agarwal and Abhishek Agarwal rendered themselves liable to penalty under Section 112 of the Customs Act, 1962." 3. KCL denied the allegations and contested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. A100 (S.C.)]. The learned Deputy Commissioner (A. R.) reiterated the adjudicating authority's reasonings. 5. We have carefully considered all the submissions. The demand of duty was quantified by the learned Commissioner after accepting the assessee's calculation of depreciation, as shown below: Average value of two autoconers as per Bill of Entry 1,97,28,330 Depreciation from 30.11.98 to 9.10.2003 96,66,882 Net Average Value for Customs Duty 1,00,61,448 Customs Duty @5% (B.C.D.) 5,03,073 C.V.D. @ 16% on (A.V. + (B.C.D.)) 16,90,323 SAD @ 4% ON (A.V. + B.C.D. + C.V.D.) 4,90,323 Total Duties 26,83,590 Obviously BCD was c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
