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TMI Blog2019 (8) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... orting wax candles. They have been procuring raw materials by way of import as well as from domestic units without payment of duty under the strength of Procurement Certificate (PC) and under CT-3 Certificates issued by the Jurisdictional Range Officer (JRO) as per the terms and conditions of B-17 Bond executed by them. The JRO had issued Procurement Certificate No.112/2013-14 dated 30.12.2013 for import clearance of 125 MT of 'Fully Refined Paraffin Wax' valued at USD 174375 without payment of Customs Duty to the importer's Bonded Warehouse cum manufacturing facility as per Notification No.52/2003-Cus. dated 31.3.2003 read with conditions stipulated in the B-17 Bond. The appellant filed warehouse Bill of Entry No.4262263 dated 4.1.2014 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame were not warehoused. Aggrieved by the said order, appellant filed appeal and the Commissioner (A) rejected the same. Hence, the present appeal. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. She further submitted that the appellant placed order for "Fully Refined Paraffin Wax" but has been supplied "Magnesium Sulphate in powdered form (paraffin white powder), which are defective goods and is unfit for use by the appellants in the manufacture of wax candles. She further submitted that there cannot be any demand of duty on the paraffin white powder as the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 21.1.2014 directed the appellant to follow the procedure in terms of Circular No.19/2007 and examine the cargo and intimate the discrepancy. Thereafter, the appellant intimated the discrepancy in terms of the letter dated 27.1.2014 which is at page 100 of the paper-book. Thereafter on intimation, the Department has not re-warehoused the goods but has directed the appellant vide their letter dated 30.1.2014 to follow the procedure in terms of Circular No.60/1999. Therefore, the appellant has followed the procedure prescribed in the Circular No.60/1999. Therefore, the appellant has followed the procedure prescribed in the Circular No.19/2007-Cus. and Circular No.7/2006. She also submitted that in any case re-warehousing of the goods is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is to be considered as disposal of goods. She also questioned the demand of duty under Section 72(1)(d) of the Customs Act and in terms of the conditions of the bond on the ground that the goods were duly accounted for. For this submission, she relied upon the following decisions: * Commissioner of Customs vs. Maini Granites Ltd.: 2005 (187) ELT 55 (Tri.-Bang.) * Flemingo Duty Free Shop Pvt. Ltd. vs. CCE: 2018 (361) ELT 742 (Tri.-Mum.) 5. On the other hand, the learned AR defended the impugned order and submitted that the appellant have not complied with the various Circulars issued by the CBEC. He further submitted that the Circular No.19/2007-Cus. stipulates that in case of discrepancy in the goods the EOU is not allowed to self-w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ousing / bonding procedure need not be followed if any discrepancy is found at the time of examination of the imported goods. Further, I find that once the appellant lodged the complaint to the police and the impugned goods were seized and was auctioned by the order of the Jurisdictional Magistrate on 26.8.2017 and also the sale proceeds of Rs. 10,000/- were deposited in the court. Since the goods have already been auctioned by the order of the Court, it was not possible for the appellant to comply the conditions of re-warehousing certificate and further, it was not possible for the appellant to submit re-warehousing certificate as the goods imported was not 'Fully Refined Paraffin Wax'. In fact, the appellant has been cheated / duped by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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