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TMI Blog2023 (8) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009. They claimed the benefit of Notification No. 27/2008-Cus dated 01/03/2008. Under this Notification, if the goods are re-exported between 3 months to 6 months from the date of import, the Customs duty is required to be paid @ 15% of the Tariff rate. This Notification stipulates that the importer is required executive bond with a bank guarantee undertaking to re-export of the goods. The appellant approached the Customs officials to get the benefit of this Notification. The officials allowed the clearance of the goods provisionally against payment of 15% of the total duty along the re-exported bond executed by the Appellant and with security deposit of Rs.73,65,624/-. The Appellant could not reexport the goods since the project work was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Customs Duty saved, the importer is required to execute the bond with Bank Guarantee, the Department insisted that instead of the Bank Guarantee, the Appellant should make Security Deposit towards the duty saved. Therefore, having no other alternative, the Appellant has made the Security Deposit of Rs.73,65,624/- at the time of imports. He submits that this act of Customs Department has nullified the very concession proposed in the Notification No. 27/2008- Cus dated 01/03/2008. He submits that since the re-export could not take place due to the factors which were beyond their control, they are not disputing that the balance 85% duty is required to be paid by them. Therefore, they are not contesting appropriation of the Security Deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods. The Department has not filed any Appeal against this order dated 29/03/2011. Therefore, it is clear that the Department has subsequently taken the view that no confiscation, redemption fine and penalty is required in such cases. In view of the foregoing, the Learned Consultant prays that the present Appeal may be allowed. 5. The Learned AR reiterates the findings of the Adjudicating Authority. He submits that it is an admitted fact that even after executing the Bond undertaking to re-export the goods within 6 months, the Appellants have failed to do so. Therefore, he justifies the findings and order of the Adjudicating Authority. 6. Heard both sides and perused the documents. 7. On going through the Notification No. 27/2008-Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1962. The interest shall be calculated from the date of import of the said goods till the date of payment of duty. Security deposit of Rs.73,75,624/- (Rs. seventy three lakhs sixty five thousand six hundred twenty four only) is appropriated towards payment of duty amounting to Rs. 73,65,624/-(Rs. seventy three lakhs sixty five thousand six hundred twenty four only). [Emphasis supplied] 9. From this Order, it is clear that this is not a case where the Bank Guarantee has been encashed by the Department when the OIO was passed. The Security Deposit was available right on the day when the import has taken place. Therefore, when the entire amount was available in the form of Security Deposit of Rs.73,65,624/- on the day of import, the que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the interest confirmed under the impugned OIO. We hold that the Appellant is not required to pay the interest of Rs.20,71,220/- which they have paid on 26/08/2011. 13. Coming to the issue of confiscation, Redemption Fine and penalty, in the case of Sun Knitwear Pvt. Ltd. Vs. Commr. of Customs, Bangalore-2007 (207) E. L. T. 85 (Tri.-Bang.), the Tribunal has held as under:- 5. xxx Once the appellants pay the duty and interest, the goods will be out of the ambit of the said notification and they cannot be held liable for confiscation under Section 111(o) of the Customs Act as held by this Tribunal in Steel Authority of India v. CCE [2005 (184) E.L.T. 308 (Tri. - Bang.)]. When the goods are not liable for confiscation, there is no q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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