9911796707
TMI Blog2014 (4) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ting and polishing work. For the purpose of its manufacturing activities, the petitioner imported certain machineries. Such machineries would require sophisticated software for operation. The issue pertains to duty liability on such imported software. It is not in dispute that in respect of about 74 such items, DGCEI is inquiring into whether such imports attracted service tax. Majority of these imports were made in the year 2007 and shortly thereafter. The petitioner actually put the goods to use and continued its manufacturing activity from its unit at Surat. At that stage, the Customs department initiated investigation regarding the customs duty liability on such imported software. These investigations are pertaining to 37 imports which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department under the Customs Act, 1962 or any other law for the time being in force." On rest of the consignments, the Assistant Commissioner of Customs passed order on 13.3.2014, releasing the goods on following conditions. "(i) Execution of Bank for the fullvalue of goods i.e. Rs.23,64,02,760/- (ii) Execution of Bank Guarantee of 25% of the value of the goods i.e. Rs.5,91,00,690/-." In the present petition, out of the several prayers made in the petition, we are examining the limited prayer whether on certain conditions the petitioner can be permitted to use the software for its manufacturing activity since rest of the prayers are not pressed. The petitioner has been contending that the DGCEI has already recovered more than Rs.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, in his order dated 13.3.2014. Under the circumstances, when a sizeable sum of Rs.3 crores is already recovered by one arm of the Union of India, further condition of bank guarantee merely for using the software pending further investigation and possible adjudication would not be justified. Under the circumstances, it is directed that the petitioner would be allowed to utilize such seized machinery along with the installed software for its manufacturing activity in the machines imported and installed at its Surat unit on following conditions : (1) The petitioner shall give a bond of the full value indicated by the authorities in their two orders of provisional release. (2)The petitioner shall not remove the goods including the machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial jurisdiction is concerned, is to ascertain, as to whether the facts pleaded have any bearing with the lis or the dispute involved in the case. In the present case, what we find is that the registered office of the petitioner is at Mumbai, and the show-cause notice was also received at the Mumbai office. All queries were answered before the Commissioner of Service Tax at Mumbai. Levy of Service Tax under Section 66A of the Finance Act, 1994 has also been challenged in the High Court of Bombay. Thus, according to us, no part of cause of action can be said to have arisen within the territorial jurisdiction of this High Court. It is difficult for us to accept the submission of Mr. Shah that diamonds were received at Surat after being impor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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