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2002 (1) TMI 79

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..... ity Board (hereinafter referred to as the "Board") to execute a project at Chandrapur for Coal Handling Plant on turn-key basis. For the purpose of executing the said project, the petitioner-company was required to import certain materials from abroad and accordingly the petitioner-company applied for import licence on 1-1-1998. The said licence was issued by the Company Authority on 5-3-1998. On the basis of the said licence, the petitioner-company imported the necessary material which were utilized for putting up the plant for the Board. It is an undisputed fact that the said import was permitted to be carried out by virtue of Notification No. 36/97-Cus. dated 11-4-1997 as amended by Notification No. 67/97-Cus., dated 8-9-1997 and Notific .....

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..... Counsel for the Central Government, is to the effect that the petitioner had not fulfilled the conditions by which the licence and the exemption had been granted to the petitioner hence the Customs Department was within its rights by virtue of relevant provisions of the Act to encash the Bank Guarantee on termination of the specified period, as stipulated. In support of this submission, our attention was invited to the following clause of the Bank Guarantee : "Whereas M/s. Elecon Engineering Co. Ltd., have undertaken to produce evidence in respect of export obligation to be discharged against the said Licence No. P/L/01001360/1/03/10/1/05, dated 5-3-98 and Notification No. CUS. 36/97, dated 11-04-97 within 30 days from the expiry of the .....

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..... ced on sub-section (2) of Section 142 of the Customs Act, 1962 which in unequivocal terms lays down what would be the modes of recovery once an assessee becomes liable to the duty under the Act. In the present case, there is no dispute to the fact that the goods which were imported were otherwise liable to duty under the Act and but for the exemption claimed under the impugned Notification, the petitioner would have been liable to make the payment of duty at the time when the goods were cleared. Under these circumstances, it is not possible to accept the contention that a show cause notice and final adjudication were necessary before the Bank Guarantee could be encashed. 7. Mr. M.R. Shah on behalf of the respondent-Department also drew th .....

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