9911796707
TMI Blog2000 (2) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ted under Section 111(o) ibid but allowed to be redeemed on a fine of Rs. 50,000/- only. Further, a penalty of Rs. 45,000/- has been imposed on the appellant under Section 112A ibid. 2. Briefly, the facts of the case are that the appellants were granted a letter of intent for setting up a 100% EOU for manufacture of polished granite slabs, panels and monuments vide Ministry of Industry letter dated 9-9-1986 and accordingly, a Customs private bonded warehouse licence was granted by the Assistant Commissioner of Customs on 25-11-1992 which was valid up to 30-9-1995. The appellants imported capital goods claiming exemption under Notification No. 13/81-Cus., dated 9-2-1981 for this purpose involving customs duty of Rs. 4,69,28,763/-. This let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital goods in their factory and for commencing of production, etc., have issued this letter of intent. This means that the Ministry of Industries were satisfied that the explanations offered by them had merit and that the viability of the project was still possible. Ld. Advocate further submits that this is also borne out by the fact that the letter mentions that for any further extension could also be considered provided satisfactory steps were taken to start the project in the meanwhile. Ld. Advocate submits that since the 100% EOU scheme functions under the umbrella of two legislations namely the 100% EOU Scheme of the Ministry of Industries and the Customs Notification as well as the Customs provisions with relation to a private bonde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated the conditions laid down in Notification No. 13/81-Cus., dated 9-2-1981 as amended." 5. He further submitted that while the above position held good when the order impugned was passed, it does not hold good any longer. The position today is that one wing of the Government of India namely, the Ministry of Industries has specifically extended the validity of letter of intent up to September, 2000 and has even indicated that it is open to consider further application of extensions. Therefore, he submits that this being the latest development, it should be considered by the competent authorities before a final decision if the matter is taken with respect to the demand of duty, etc. 6. Ld. DR submits a copy of letter C.No.V/R/MISC/2/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme. For the purposes of meeting the objectives of this scheme in terms of allowing import of goods free of duty of Customs, to employ these goods for the production of final products authorised under this scheme and their ultimate export to meet the export obligation defined under the scheme, the Ministry of Finance has prescribed that the scheme shall operate as far as Customs duties, etc., are concerned under Notification No. 13/81 ibid and also Chapter IX of the Customs Act relating to warehousing of imported goods as well as manufacture of goods in Customs bonded warehouse. The position is to be therefore considered in a holistic manner by which either of the two legal schemes should not be brushed aside at the cost of the other. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit from this scheme would be defeated. Also the appellants would be treated to serious injury. Therefore, it is our considered view that the interest of justice demand that the ld. Commissioner of Customs should take a fresh look into the matter in the light of the extension of this validity by the Ministry of Industries, as per law. Therefore, we set aside the Order-in-Original impugned and remand the entire matter back to the ld. Commissioner for a de novo consideration of the matter in all these aspects as per law taking into consideration the extension of the letter of intent on record. Since the matter pertains to an extension of the validity for only a few months from date, therefore it follows that the ld. Commissioner should compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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