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TMI Blog2024 (4) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... relinquishment of title to warehoused goods inserted w.e.f. 14.05.2003 and the subsequent amendment made in the year 2016 to remove other charges and fees from its provisions, it is clear that the said proviso has extended the time available to the owner/importer of warehoused goods for relinquishment of title till or before an order for clearance of such goods for home consumption, as mentioned in clause (c) of section 68, has been made by the proper officer. In the facts of the present case, the relinquishment of title was made by the appellant well in time, as permitted by the Statute as no order for clearance of goods for home consumption was made till that date - the issuance of SCN under section 72(1)(b) for warehoused goods cannot st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellants are engaged in business of providing drilling rigs on hire basis to various on shore oil explorers in India, who operate under Government/ONGC contracts. 3. Vide Warehouse Bill of Entry (WBE) No.5714432 dt.24.03.018 the appellants warehoused imported 81 packages (gross weight of 581.630 MTs) of 'Equipment/Component for Land Rig #20 in Knockdown condition, Bunk House Two Main Office Unit' under CTH 8430 4900. 4. After assessment for bond purposes, out of charge for warehouse was given on 23.05.2018 with permission by proper officer on 24.05.2018. 5. The appellant filed a triple duty bond amounting to Rs.60,00,00,000/- bearing No. 2001405214 dt.23.05.2018 under proviso to section 59(2) of the Customs Act, 1962. 6. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, to which the appellants replied vide submissions that due to continuing financial crunch and the ongoing COVID-19 pandemic, they are not in a position to furnish any bank guarantee, issuance of which requires equivalent deposits at bank as there are no funds available with them. A written plea was also made for waiver of bank guarantee. 13. During the hearing, the appellant relinquished their title of the goods requesting the Adjudicating Authority for disposal of goods by Auction. The prayers were refused as irrelevant holding that under the provisions of section 72, the goods are already deemed as improperly removed. The Adjudicating Authority vide OIO No. 04/2021 dt.20.04.2021 confirmed the entire demand of assessed duty Rs.1,64 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogies Software Pvt Ltd (supra) is squarely applicable as in said matters title was relinquished after provisions for such relinquishment were incorporated in 2003. D. That Hon'ble Supreme Court's decision in Kesoram Rayon (supra) firstly relates to determination of rate of duty when goods are deemed as cleared on date of expiry of bond. Secondly, the decision is rendered for goods warehoused prior to date of amendment in section 68 i.e., when rights of relinquishment as statutorily incorporated in section 68. Thirdly, the decision of Hon'ble Supreme Court does not address the issue of rights of relinquishment of title. E. That rejection of the appellant's relinquishment of title of warehoused goods be accepted and consequently, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions, we find that the Commissioner (Appeals) have erred by not taking notice of the subsequent amendments made in section 68 wherein proviso was inserted by Finance Act 2003 w.e.f. 14.05.2003. The said proviso reads as follows: "Provided that the owner of any warehoused goods may, at any time before an order for clearance of goods for home consumption has been made in respect of such goods, relinquish his title to the goods upon payment of rent, interest, other charges and penalties that may be payable in respect of the goods and upon such relinquishment, he shall not be liable to pay duty thereon." 18. The words of "rent, interest, other charges and penalties" appearing in the aforementioned proviso, before 'penalties' were omitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as warehouse charges, rent etc." 22. Upon careful reading of section 68, as amended by the provision for relinquishment of title to warehoused goods inserted w.e.f. 14.05.2003 and the subsequent amendment made in the year 2016 to remove other charges and fees from its provisions, it is clear that the said proviso has extended the time available to the owner/importer of warehoused goods for relinquishment of title till or before an order for clearance of such goods for home consumption, as mentioned in clause (c) of section 68, has been made by the proper officer. 23. We find that in the facts of the present case, the relinquishment of title was made by the appellant well in time, as permitted by the Statute as no order for clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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