9911796707
TMI Blog2015 (1) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... ods which are in warehouse after the expiry of Bond period). Therefore, we exercise our right in terms of Boards circular and abandon the goods (details as per enclosed statement) under Section 23(2) of Customs Act, 1962. Chief Commissioner had allowed the relinquishment of the goods and the goods were auctioned and therefore, the demand of duty is not sustainable - no reason to interfere with the order of the Commissioner (Appeals) - Decided against Revenue. - C/367/2004 & C/CO/28/2005 - FINAL ORDER No. 40774 / 2014 - Dated:- 16-9-2014 - SHRI P.K. DAS AND SHRI R. PERIASAMI, JJ. For the Appellant : Shri Parmod Kumar, JC (AR) For the Respondent : Shri. R. Raghavan , Adv. JUDGEMENT Per: P.K. Das, The relevant facts of the case, in brief, are that the respondents were engaged in the manufacture of excisable goods falling under Chapter 84299000 of CETA, 1985. The respondents took over the factory run by M/s. Hindustan Motors Ltd., Wheel Loader Plant, under the provisions of the Companies Act, 1956. The respondents imported Axies and Gear Transmission Assemblies and warehoused the goods under the Bills of Entry in the year 2001 and executed bonds. The war ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the said Act, 1962. He relied upon the decision of the Honble Supreme Court as under:- 1. Kesoram Rayon Vs. Collector of Customs, Calcutta 1996 (86) ELT 464 (S.C.) 2. Sbec Sugar Ltd. Vs. UOI 2011 (264) ELT 492 (S.C.) 3. CCE, Mysore Vs. Decorative Laminates (I) Pvt. Ltd. 2010 (257) ELT 61 (Kar.) It is submitted that the letter dated 28.03.2003 of the Chief Commissioner would be considered for auction under Section 72(2) of the Act, as the respondent had not made any request for extension of the warehousing period. 3. The Ld. Advocate on behalf of the respondent submitted written submissions at the time of hearing. He submits that in this case, the Chief Commissioner of Customs by letter dated 28.03.2002, directed the Commissioner of Customs (Seaport) to take possession of the goods for auctioning the same, since there was no request for renewal of the bond by the respondent. He submits that as per the direction of the Chief Commissioner, the goods were auctioned and informed to them by letter dated 24.05.2006. It is contended that while issuing the show cause notice, the Superintendent of Customs had not considered the permission of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case, since the period of bonding has expired, the stocks noted in the enclosed statement are no more warehoused goods. But nonetheless they are Imported Goods in as much as no order for clearance for home consumption has been passed. The Central Board of Excise Customs in their letter (F.No. 473/88/72-Cus. III dated 15th Sep.1972 have upheld the right of the owners (Imported Goods) to abandon such goods (Goods which are in warehouse after the expiry of Bond period). Therefore, we exercise our right in terms of Boards circular and abandon the goods (details as per enclosed statement) under Section 23(2) of Customs Act, 1962. 5. The Chief Commissioner of Customs by letter dated 28.03.2002, in respect of abandoning the imported goods under Section 23(3) of the Customs Act, directed the Commissioner of Customs (seaport), to take possession of the goods for auctioning the same. For the proper appreciation of the case, Section 23 is reproduced below:- Section 23. Remission of duty on lost, destroyed or abandoned goods. - (1) (Without prejudice to the provisions of section 13, where it is shown) to the satisfaction of the (Assistant Commissioner of Customs or D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he warehousing period, the proper officer may raise the demand of duty along with interest and penalty and also initiate recovery proceedings of the goods. He submits that the auction of the goods is related to Section 72(2) of the Act. 8. We are unable to accept the contention of the Ld. AR. In the present case, we find that the respondent applied for relinquishment of the goods under Section 23(2) of the Act. The Chief Commissioner of Customs, directed the Commissioner of Customs to take possession of the goods for auctioning the same. It is seen from the records that the Assistant Commissioner of Customs, Pondicherry, by letter dated 24.05.2006, informed to the respondent that the abandoned warehoused goods have been sold in the e-auction held on 28.04.2006 and the goods were released to the highest bidder. After the order of the Chief Commissioner by letter dated 28.03.2002, the Superintendent of Customs, issued notice dated 16.05.2002, for recovery of duty along with interest and penalty under Section 72(1) of the Customs Act. It is seen that while issuing show cause notice, the proper officer had not taken into consideration of the permission of the Chief Commissioner of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of such goods under the Act Similarly Section 72 (1) requires the owner of such goods which have not been removed within the bond period to pay forthwith the full amount of duty chargeable on account of such goods. From these provisions, it would be observed that under the bond, Government can enforce only the duty chargeable or claimable under the Act and since under Section 23 (2) duty liability gets extinguished no duty continues to remain chargeable. As such, the Board is of the view that no duty can be recovered even in terms of bond under Section 72 (1) in respect of goods abandoned under Section 23 (2) of the Customs Act. Further Section 68 of Customs Act was amended w.e.f. 14.05.2003. Eventhough, the goods were warehoused before the date of legislation and the goods continued to be in the warehouse on the date of amendment, the amended provision will be applicable to the impugned goods. It is observed that the value of the goods at the time of import was ₹ 48,28,697/-. By abandoning the impugned goods the appellants have lost the entire value of the goods whereas the department has lost the duty portion. However, it can be set off to the extent of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
