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TMI Blog2024 (5) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms procedures and to pay duty on the scrap value on the highest bidder of the scrap. Since permission was granted by the customs, the question of suppression of facts or misrepresentation of facts does not arise and hence, the show-cause notice cannot invoke extended period of limitation. It is also pertinent to mention that the Commissioner (A) in the impugned drops the penalty imposed under Section 114A stating that in the instant case, there had been continuous correspondence between the appellant and the department on this issue and there is no suppression of facts . It is also observed that in the impugned Order-in-Appeal, the Commissioner (A) upholds the demand under Sections 72 (1) of the Customs Act, 1962 in terms of B17 bond ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods, the appellant had not de-bonded them. Meanwhile, a mob of villagers on 24.07.2008 entered their premises and burnt the capital goods. Subsequent, to this the goods were de-bonded and cleared as scrap and paid the relevant duties accordingly. However, notice dated 13.12.2012 was issued for demanding the differential duty on the original capital goods, which was adjudicated by the Original Authority confirming the demand and upheld by the Commissioner (Appeals) in the impugned order. 3. At the outset, the learned counsel submits that both the show-cause notices invoking extended period under proviso to Section 28 (1) / 28 (4) of the Customs Act, 1962 are not sustainable. It is submitted that the Commissioner (A) in one of the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 374 (Kar.) affirming the Tribunal's decision as reported at 2006 (206) ELT 1015 (Tri.-Bang.) • Winsome Yarn Ltd. vs. CCE: 2001 (134) ELT 686 (Tri.-Del.) 3.2 The learned counsel further submits that the appellant vide their letter dated 6th March 2010 to the Development Commissioner, Cochin, Special Economic Zone, Bangalore, that they wanted to de-bond the capital goods which had been burnt during the riots in their plant. The letter clearly mentions that "we will de-bond the capital goods and pay the duty on the scrap and dispose of the same as per the customs procedure." and requested for No Objection Certificate. The Office of Development Commissioner vide their letter dated 11.03.2010 granted permission for de-bonding of capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been short levied by reason of collusion, wilful misstatement or suppression of facts and in the instant case, there had been continuous correspondence between the appellant and the department on this issue and there is no suppression of facts." 5.1 In the appeal No. C/20711/2017 against Order-in-Appeal No. 106/2017-CE AU-I dated 7.3.2017, Department had filed an appeal against the same Order-in-Original referred above for demand of penalty equivalent to duty and interest, which was confirmed by the Commissioner (A) in the impugned order. Hence, two appeals on the same issue regarding demand of duty on the capital goods which were cleared after they were burnt by the mob of villagers. 6. The appellant has placed before us a press rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this letter, the Assistant Development Commissioner has allowed them to de-bond the capital goods as per Para 6.15 (b) of Chapter 6 of the Foreign Trade Policy, 2009 - 2014 subject to payment of applicable duties and observance of customs formalities. 6.1 In view of the above stated facts, it is clear that the appellant had intimated about the riots and taken the necessary permissions from the authorities concerned for de-bonding the burnt capital goods as per the Customs procedures and to pay duty on the scrap value on the highest bidder of the scrap. Since permission was granted by the customs, the question of suppression of facts or misrepresentation of facts does not arise and hence, the show-cause notice cannot invoke extended peri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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