9911796707
TMI Blog2014 (6) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... SKO) and availed the benefit of exemption Notification Nos.23/98-Cus. dated 22.06.1998, 20/99-Cus. dated 28.02.1999 and 16/2000-Cus. dated 01.03.2000. These Notifications exempt the kerosene oil imported by M/s. Indian Oil Corporation Ltd. for ultimate sale through Public Distribution System (PDS). Investigations conducted by the Officers of the DRI, however, revealed that the imported goods were not solely used for the purposes specified in the above Notifications. Accordingly, show cause notice was issued to the Appellant and adjudicated by the Commissioner, which culminated into confirmation of Customs Duty demand of Rs.412,17,25,807/-, interest (not quantified) and equivalent amount of penalty imposed upon the Appellant. He appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce were under subsidy scheme of the Government of India. As such, supplies to defence are akin to the supplies to economically vulnerable section of the society under PDS. The ld. Advocate submitted that pursuant to the policy decision of the Government of India contained in letter dated 13.03.2006, in spite of loosing over Rs.120 crore per annum, the Appellant had to supply SKO to defence services at subsidized rates. In regard to the supplies to PDS dealers beyond quota fixed by the State Government, the ld. Advocate has submitted that the expression, 'PDS', has not been defined either in the Central Excise or Customs Act or in the Notifications. It is, however, defined in the relevant Control Orders issued by the State Government coverin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the Central Government or the State Government, as the case may be, and any excess sale thereof, would be the sale of kerosene, which cannot be treated as PDS sale. He also submits that the supplies to defence cannot be equated to the expression, 'sale through public distribution system', as the defence constitutes a separate category of buyers. The ld. Counsel also submitted that the Appellant in this case had not indicated in the bills of entry that they were availing the exemption which is meant for sale of imported goods through public distribution system. He has further submitted that the Appellant had not made any attempt to inform the Customs Department either about the excess sale beyond the quota under the PDS or as the case m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the Public Distribution System. These Notifications do not define the Public Distribution System. However, in exercise of the powers conferred by Section 3 of the Essential Commodities Act, 1955, the Central Government has framed, 'Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993'. Section 2(j) of this Order defines the Public Distribution System so as to mean, 'the system of distribution, marketing or selling of kerosene at declared price through a distribution system approved by the Central or State Government'. It is evident from this definition that right from distribution, marketing or selling through public distribution system at the declared price is to be approved by the Central or State Government. On harmo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been categorically found by the Adjudicating Commissioner at para 62(vii) (page 105) of his Order dated 30.09.2005, has categorically observed that the Appellant during the relevant period of dispute effected sale to the industrial customers out of the imported stock of SKO, knowing fully well that such industrial sale did not attribute to sale through Public Distribution System. The Appellant also sold the kerosene in excess of the quota fixed by the Central/State Government. He has, further, observed that from the records, it is evident that in the bills of entry, they had never indicated that certain quantity would be sold to the industrial consumers or excess sale beyond quota was made to PDS dealers in West Bengal. They did not app ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
