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TMI Blog2023 (5) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... rlooked only at the cost of proper tax administration. The appellant, doubtlessly, has been derelict in not taking steps sufficiently in advance for compliance with procedure that would place the utilisation of the goods beyond the pale of suspicion. That the appellant had a not too pleasant relationship with the owner of the erstwhile premises does not appear to be an incorrect surmise; that the appellant had, in fact, moved manufacturing operations to another registered premises is also not in dispute - The appellant, also, is not incorrect in pointing out that there was no particular reason to discountenance the certificate issued by the Chartered Accountant. As noted by the original authority, the substantial difference between the facts in the present dispute and that in JCT Electronics Ltd [ 2010 (8) TMI 598 - PUNJAB HARYANA HIGH COURT ] is the approval of the jurisdictional authorities to the shift of manufacturing facility and the decision of the Tribunal, in re FDC Ltd, therefore, placed emphasis on the larger issue of compliance with the intention of law even if, in the process, procedural requirements may not have been faithfully followed. That the appellant had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or intended purpose as well as bond of liability to duty in the event of failure to deploy the goods at their factory, the appellant had been issued with 22 duty certificates for effecting imports but, admittedly, sent eight of the consignments, imported between June 2009 and May 2011 and valued at ₹ 3,18,50,590, to another facility of theirs at Umbergaon on 1st April 2011 before surrendering registration of the factory at Panvel vide letter dated 28th June 2011. On these facts, and consequent breach of the condition in the notification, the proceedings initiated by notice dated 23rd April 2012 culminated in recovery of duty and other detriments supra. 3. According to Learned Chartered Accountant appearing for the appellant, the exigency of business, owing to dispute with the owner of the premises, had prompted registration of the factory at Umbergaon on 31st May 2011 for transfer of all manufacturing activity there which the central excise authorities at Panvel were informed of while surrendering the registration. In the course of proceedings arising therefrom, the assessee had failed to avail the opportunity of being heard and, the first round of litigation having been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal authority and detailed findings recorded thereon even as the duty liability was confirmed and other detriments imposed. To that extent, the direction of the Tribunal has been complied with and we are now concerned with the justification adduced by the lower authorities for rejecting the evidence. 7. According to Learned Chartered Accountant, neither of the lower authorities have led with a finding that the goods had not been utilised in the manufacture of antennas cleared on payment of appropriate duties of central excise. It is contended by him that the said Rules do not require the imported goods to be utilised at anyone particular factory and that its deployment at any registered factory would, as held by the Tribunal in FDC Ltd v. Commissioner of Central Excise, Belapur [2017 (357) ELT 464 (Tri-Mumbai)] and of the Hon ble High Court of Punjab Haryana in Commissioner of Central Excise, Chandigarh-I v. JCT Electronics Ltd [2011 (267) ELT 41 (P H)] which was upheld by the Hon ble Supreme Court in dismissal of the appeal of Revenue, suffice. He further contends that the shifting of the factory was within the knowledge of the jurisdictional authorities and that it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n diverted or misused; the ground for recovery of duty and other detriments is the breach of procedure. The decision of the Hon ble High Court of Punjab Haryana in re JCT Electronics Ltd holding that 9. The Commissioner (Appeals), while upsetting the order of demand passed by the adjudicating authority, considered various factors the significant of all, that as contended on behalf of the assessee was that though the goods were purchased for use in the manufacture of colour picture tubes at their Mohali Unit, but due to closure of that unit, the assessee-company was not able to use the inputs and as such the same were diverted to their unit in Vadodara for the same purpose. This was done after giving proper intimation to the appellant-Department and the latter had never raised any objection to that being so done. The Tribunal also, while adjudicating the controversy held that the only failure on the part of the importer was that it did not use the imported inputs in the factory premises registered with the Jurisdictional Assistant Commissioner, in terms of Rules 3 and 4 of the 1996 Rules and instead use the same for the intended purpose, in another unit of its factory with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to direct that the original authority, for satisfaction of proper utilisation of the imported goods, may obtain from the jurisdictional authorities of the Umbergaon factory all details of arrival and disposition of the imported goods for ensuring that duty liability shall be restricted to the extent to which there is no reconciliation of receipt and usage. That would be the only manner in which the direction of the Tribunal on the former occasion would be appropriately complied with. 14. To enable that, we set aside the impugned order and remand the matter back to the original authority for a fresh decision after due ascertainment in accordance with the directions supra and, in acknowledgement of the pendency of this dispute for an overly long time, we also set out a time limit of six months from the date of receipt of this order for completion of the adjudication process. Needless to say, the proceedings shall adhere to the principles of natural justice and the appellant herein shall also cooperate unconditionally with the adjudicating authority in pursuit of facts necessary to complete the process expeditiously. Appeal is, accordingly, allowed by way of remand. ( Order pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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