9911796707
TMI Blog2021 (3) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute is limited to the computation of liability to duties of customs on the goods, allowed free at the time of import, that remained after completion of export obligation conditional upon which the exemption had been permitted to be availed. Even less complex is the plea of Learned Counsel for appellant that the impugned order, taken to its logical conclusion, should have rendered proceedings for recovery of differential duty to be barred by being beyond the normal period of limitation prescribed in Section 28 of Customs Act, 1962. 2. The appellant, having been issued with 'advance licence' dated 27th March, 2002 entitling them to procure 'Mono Ethylene Glycol (MEG)' without payment of duties of customs under Notification No. 50/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first appellate authority, after taking note that the constraints in ascertainment of stock-in-balance of the two consignments separately left no option but to value the unutilized goods by 'First In First Out (FIFO)' method, had no hesitation in returning the finding that ingredients warranting recourse to the penalty under Section 114A of Customs Act, 1962 did not exist which, she contends, should have been held to be no less applicable to the demand under Section 28 of Customs Act, 1962 as decided by the Hon'ble Supreme Court in Commissioner of Customs, Mumbai v. MMK Jewellers [2008 (225) E.L.T. 3 (S.C.)]. It was also argued that no particular method of valuation had been prescribed, till 26th July, 2007, by Central Board of Excise &Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch held that recovery of duties of customs on conditionally exempted goods did not have to resort to Section 28 of Customs Act, 1962, did validate the demand even if effected under a wrong authority of law. 5. It is abundantly clear from the facts and circumstances that the appellant, in accordance with eligibility for exemption of duties of customs in the import of 'Mono Ethylene Glycol (MEG)' for manufacture and supply of specified goods, had not only availed of that benefit but also, upon fulfilment of the obligation thereto by utilisation of less than permissible quantity, discharged duty liability on goods that remained by applying the lower of the two declared values. Admittedly, the appellant did not maintain separate records o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such eventuality but that was never notified for bringing into force; that very legislative intent appears to have been reflected in the decision of the Tribunal. However, from the enunciation of '21. ... we agree with the conclusion in Lady Amphthil (supra) that duty can be recovered by the Department when post importation conditions of an exemption notification are not fulfilled. We, however, do not agree with the observation in Lady Amphthil (supra) that the period of limitation in such cases will commence from the date of issue of notice. Since the time limit prescribed under Section 28 has been held to be not applicable to such cases, and since there is no other specific time-limit under the customs law to cover such cases, we a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able indication. The finding in the impugned order that there has been no suppression, or intent to evade duty, is, consequently, unassailable. That this is so is further evidenced by the conspicuous lack of any appeal by Revenue against such finding. The absence of any ingredient among those specified in Section 114A of Customs Act, 1962 would justify, to no lesser extent, the lack of recourse also to the extended period of limitation for recovery of differential duty and interest thereon. 8. In view of the above, we find that the claim of the appellant cannot be discarded and, therefore, the demand fails. Appeal is allowed on our finding of applicability of limitation without going into the correctness of the computation of duty lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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