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TMI Blog2023 (6) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... sed to set up an ICD and logistic support at Iggalur, Anekal Taluk, Bengaluru in the fifteen acres of land allotted by the Govt. of Karnataka, for which necessary approvals have been granted to the appellant by the Government of Karnataka in the year 2012. 2.2. The said ICD and logistic park set up by the appellant is a two storied building designed to utilize the natural slope of the land, which consists of a lower ground level and an upper ground level. The lower ground level is accessible from the northern side of the building and the upper ground level is accessible from the southern side of the building. The administrative building and the approach roads are common to both floors. The upper ground level is divided into export, import and bonded warehouses with direct access to the container yards. The upper ground level where the customs activities are proposed to take place cannot have access from the lower ground level as the same has been sealed. Also from the main road, there are different drive ways and gates for accessing either of the floors, which is clearly demarcated. 2.3. In 2015, the Assistant Director, Department of Expenditure had sanctioned 13 cost recovery ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No.01/2022(NT). Against the said revocation, even though a letter addressed to the Principal Chief Commissioner on 12/04/2023 to reinstate the approvals earlier granted, no response was received by the Appellant. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant Ms. Neethu James has submitted that the learned Commissioner, by the impugned order, revoked the approvals, which were granted earlier under Section 8 and Section 45 of the Customs Act, 1962read with Regulation 10 of (HCCAR, 2009) without any legal basis. She submits that the premises in question has been visited by the Customs authorities multiple times and on compliance with objections raised in the said reports finally the premises have been notified as Customs Area in terms of Section 8 of the Customs Act, 1962 and granted custodianship to the appellant under Section 45 of the said Act, read with Regulation 10 of (HCCAR, 2009). 3.2. Referring to the inspection report dt. 30/04/2019 and 18/12/2020, she has submitted that the existence of the manufacturing premises was within the knowledge of the Department and the appellant have taken steps to comply with the observations in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner is unsustainable in law. Further she has submitted that the verification report relied upon by the Commissioner post survey dt. 08/02/2023 was not made available to the appellant; hence non-supply of the said document is also resulted in gross violation of the principle of natural justice. 4.1. Per contra, the learned AR for the Revenue has submitted that pursuant to application filed by the appellant for setting up of a new ICD, Letter of Intent was issued to the appellant by Department of Commerce which was extended from time to time and last, it was extended by Anti-Smuggling Unit (CBIC) on 26/10/2021 which was valid up to 11/04/2022. The limit of Customs area for the proposed ICD was notified vide Notification No.01/2022(NT) dt. 24/01/2022 under Section 8 of the Customs Act, 1962 and the appellant was also granted custodianship of the ICD under Section 45 of the said Act. Further, on their request for allocation of location code, the Department had conducted further thorough inspection of the premises and the observation was communicated to the applicant vide letter dt. 06/04/2022, however the Appellant has failed to comply with the said observation. For operationalizatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the year 2016 by the Customs Department and taking note of necessary rectifications carried out by the appellant from time to time on the objections raised during the course of inspection, Notification No.01/2022(NT) dt. 24/01/2022 was issued, specifying the Customs area of ICD for the purpose of loading of export goods and unloading of imported goods; also permission was granted under Section 45 of the Customs Act, 1962 read with Regulation 10 of HCCAR, 2009 for a period of two years w.e.f. 24/01/2022. 8. The ICD could not come into operation immediately after issuance of the said Notification due to non-allotment of location code by the competent authority. Correspondences have been exchanged between the appellant and the Department from time to time in this regard but no positive result has emerged. The appellant was, however, intimated through order dt. 16/02/2023 about the revocation of the permission granted earlier on 24/01/2022 pursuant to a survey conducted on 08.2.2023. 9. The grievance of the appellant is that all the facts which were mentioned in the impugned order dt. 16/02/2023 revoking the earlier approvals were within the knowledge of the Department as inspectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y imported goods are pilfered after unloading thereof in a customs area while in the custody of a person referred to in sub-section (1), that person shall be liable to pay duty on such goods at the rate prevailing on the date of delivery of an arrival manifest or import manifest or, as the case may be, an import report to the proper officer under section 30 for the arrival of convenience in which the said goods were carried. REGULATION 10. Approval of appointment of a Customs Cargo Service provider and review thereof. - (1) Where the Principal Commissioner of Customs or Commissioner of Customs, as the case may be is satisfied that the applicant has fulfilled the conditions prescribed in regulation 5, he may approve such an applicant as a Customs Cargo Service provider, for a period of two years from the date of issue of such approval : Provided that a Customs Cargo Service provider already approved on or before the date of coming into force of these regulations, shall be deemed to be approved as a Customs Cargo Service provider under these regulations for a period of five years from the date of compliance with the conditions of these regulations as stipulated in regulation 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Notified area. Now, the argument of the Revenue is that there would be some GST implications if both the DTA unit as well as Customs notified area are situated in the same premises. It is also seen from the records that such apprehensions have not been spelt out in the order. 12. The Handling of Cargo in Customs Area Regulations, 2009 provide authority to the Commissioner to review the decision after allowing operation by a CCSP in the notified area. The relevant Regulation 11 of HCCAR, 2009 read as under:- Regulation 11. Suspension or revocation of approval for appointment of a Customs Cargo Service provider: (1) The Principal Commissioner of Customs or Commissioner of Customs as the case may be, may, subject to the provisions of these regulations, suspend or revoke the approval granted to the Customs Cargo Service provider subject to the observance of procedure prescribed under regulation 12 and also order for forfeiture of security, if any, for failure to comply with any of the provisions of the Act and the rules, regulations, notifications and orders made thereunder; (2) Notwithstanding anything contained in sub-regulation (1), the Principal Commissioner of Customs o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion of the aforesaid inquiry, the Assistant Commissioner of Customs or Deputy Commissioner of Customs shall prepare a report of the inquiry recording his findings. (6) The Principal Commissioner of Customs or Commissioner of Customs, as the case may be shall furnish to the Customs Cargo Service provider a copy of the report of the Assistant Commissioner or Deputy Commissioner of Customs and shall require the Customs Cargo Service provider to submit within the specified period not being less than thirty days any representation that he may wish to make against the findings of the Assistant Commissioner of Customs or Deputy Commissioner of Customs. (7) The Principal Commissioner or Commissioner shall, after considering the report of the inquiry, and the representation thereon, if any, made by the Customs Cargo Service provider, pass such orders as he deems fit. (8) If any Customs Cargo Service provider contravenes any of the provisions of these regulations, or abets such contravention or who fails to comply with any provision of the regulation with which it was his duty to comply, then, he shall be liable to a penalty which may extend to fifty thousand rupees. (9) Any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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