9911796707
TMI Blog2001 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... alties. 2. Whether, as a consequence of the appointment of MMTC as canalizing agency for the import of gold, MMTC can be made liable for payment of Customs duty in the event the unit commits a breach of its obligation to export the jewellery made from such gold, and thereby allow all such defaulting units to escape scot free of any liabilities. 3. Whether the finding by the Hon'ble Tribunal that "the scheme provides for issuing of gold by M/s. MMTC to the unit only on the strength of Bill of Entry filed by the unit and duly assessed", does not lead to the conclusion that once the gold is issued to a unit, the liability for payment of duty in the event of default gets automatically transferred to the unit to whom the said gold is issued. 4. Whether there can be any requirement read into the REP Circular No. 22/98, as held so by the Hon'ble Tribunal, namely that "MMTC has a responsibility/continuing obligation to monitor the activities of the exporting unit and to ensure export of gold/ jewellery within a stipulated period of time following which M/s. MMTC has to inform the Customs authorities and to levy penalty on the unit for extension of period on expiry", when, in fact there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wellery manufacturing units were permitted to import primary gold of 0.995 fineness for the purpose of manufacture and export of gold jewellery, subject to certain value addition norms. Such units were permitted to set up manufacturing facilities within the specified Export Processing Zones (in short "EPZ") or in Special Export Oriented Complexes subject to these units being 100% Export Oriented Units (in short "EOUs.). Para 88 of the Exim Policy 1992-97 deals with the schemes for export of gold/silver jewellery and articles. Para 88 is divided into Clause A to G and each clause governs a different Scheme. The broad outlines of the Scheme are as under: A. Scheme for export of gold/silver jewellery and articles against gold/silver supplied by the foreign buyer. B. Scheme for export of gold/silver jewellery and articles sale at approved exhibitions. C. Gold/Silver and platinum jewellery and articles under Export Promotion and Replenishment Scheme. D. Scheme for advance licence for gold and silver jewellery and articles. E. Scheme for export of gold/silver and platinum jewellery and articles from Export Oriented Unit complexes. F. Scheme for import of gold of above 18 carats dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Customs (in short "Commissioner") confirmed duty demands and imposed penalties as detailed below (in respect to orders in appeals before Tribunal) : Sl. No. Appeal No. Penalty 1. 50/98 Rs. 5,00,000/- 2. 51/98 Rs. 2,00,000/- 3. 52/98 Rs. 10,00,000/- 4. 53/98 Rs. 2,00,000/- Revenue preferred appeal No. C/498/98-C against Commissioner's Order-in-Original No. ACU/DS/13/97, dated 30th August 1997 whereby Commissioner waived duty demand and penal action against petitioner. By the order duty demand of Rs. 7,07,01,428 was raised. 5.Tribunal inter alia held that (a) benefit of exemption from payment of duty is not available to gold imported by the petitioner, and (b) penalty was imposable. However, quantum of penalty was reduced. In essence Revenues' appeal was allowed by confirming duty demand of Rs. 7,07,01,428. Penalty of Rs. 25 lacs was imposed. Petitioner's appeals were allowed by partially reducing the quantum of penalty. 6.The essence of questions which have been pressed for consideration are (a) denial of exemption under Notification No. 177/94, dated 21st October, 1994 and subsequent amendments thereto read with Notification No. 3/88, and (b) legality of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim clearly comes within the provisions providing for exemption. Provisions of this nature must receive strict construction. There is consensus of judicial opinion that exemptions from taxation have a tendency to increase the burden on the other unexempted class of tax-payers, and should be construed against the subject in case of ambiguity. It is a well-known principle that a person who claims an exemption has to establish his case. In Collector of Central Excise, Bombay-I and another v. M/s. Parle Exports (P) Ltd., 1988 (38) E.L.T. 741 (S.C.) = 1989 (1) SCC 345, it was observed by the Apex Court that while interpreting an exemption clause, liberal interpretation should be imparted to the language thereof, provided no violence is done to the language employed. It must, however, be borne in mind that absurd results of construction should be avoided. The choice between a strict and liberal construction arises only in case of doubt in regard to the intention of the Legislature manifest on the statutory language. Indeed, the need to resort to any interpretative process arises only where the meaning is not manifest on the plain words of the statute. If the words are plain and clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
