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TMI Blog2014 (6) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... how cause notice within period of 6 months from the date of clearance of goods if it is in the normal time limit and extended period of 5 years can be invoked if there is suppression of facts, misdeclaration, etc. with intention to evade duty. Show cause notice dated 21-6-2010 invokes extended period of limitation, on the ground that the appellant had not correctly declared the activities conducted by them on the finished goods which would amount to manufacture - appellant could have entertained a bona fide belief that their activities would not amount to manufacture under SEZ Act. This view is also fortified by the fact that the office of the Development Commissioner of KASEZ had written a letter to the appellant - invocation of extende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. After investigating and recording the statements of various persons, the lower authorities felt that the appellant had not followed the provisions of law correctly and was engaged in clearance of goods into DTA without carrying out any manufacturing activity as per Section 2(r) SEZ Act, 2005 and as such they were not entitled for the benefit of exemption of additional duty of customs leviable thereof under sub-section (5) of Section (3) of Customs Tariff Act, 1975 and are liable to pay differential duty for the period February, 2006 to December, 2009. Coming to such a conclusion, the lower authorities issued show cause notice on 21-6-2010 to the appellant directing them to show cause as to why the demand raised in the show cause notice b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voked in this case as there was no mis-declaration. It is his submission that the appellant had always indicated authorities regarding availment of benefit of Notification No. 45/2005-Cus., at the time of clearance of goods from SEZ to DTA. It is his submission that the issue involved in this case has been blown out of proportion inasmuch as during the material period, they had filed bills of entry with officers, who after assessing the said bills of entry allowed the appellant to clear the goods from SEZ. It is also his submission that the officers were fully aware as to the process undertaken by the appellant. It is his submission that the dispute regarding the process undertaken by the appellant would amount to manufacturing process or n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (commonly known as CVD). We find that the appellant is a unit situated at KASEZ with proper letter of authority issued by the Development Commissioner of KASEZ. The contention of appellant is that they are importing various types of perfumes, some of them are consumed in the manufacturing of products, some of the products are finished goods and in respect of finished goods, appellant undertakes the process of spray testing, checking of appearance, fragrance and then packing them in their own cartons and after labeling, DTA clearance is sought after filing Bill of Entry. The Adjudicating Authority held that these activities undertaken by the appellant will not amount to manufacture on reading the definition of manufacturing under SEZ Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s I hold that the extended period of limitation is available to the department for issue of this show cause notice. 10. It can be seen from the above referred findings of the Adjudicating Authority that he has misconstrued the entire issue on limitation. We find that the Tribunal vide its order dated 20th September, 2005 in the appellant s own case as regards the activities conducted by the appellant, recorded the following findings : We find that all manufacture cannot be judged with reference to section 2(1) of the Central Excise Act, 1944. In fact the board vide its orders/circulars has held and ordered the field staff, that a broader view is called for in respect of the interpretation of the provisions of notification 1/95-C.E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which we reproduce : Kandla Special Economic Zone No. KASEZ/IA/1165/84/Vol. III/2075 Dated - June 19, 2001. M/s. Baccarose Perfumes Beauty Products Pvt. Ltd. Plot No. 3/1, Sector-III Kandla Special Economic Zone. Subject : DTA Sales benefits - matter regarding. Sirs, I am directed to refer to the correspondence resting with your letters No. Nil dated 4-11-2000 and to inform you that the KASEZ Board of Approval has since decided that your activities in Stage-II III operations are covered under manufacturing activity as per the Exim Policy and that DTA benefit may also be extended for the same for the past period, subject to other conditions regarding cumulative NFEP, etc. being fulfilled. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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