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TMI Blog2003 (12) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 27 weaving machines. The appellants filed an in-bond Bill of Entry and the imported goods were warehoused. The appellants also made request for extension of warehousing period and the Customs department extended the period of warehousing. In the mean time, the appellants made an application to the Ministry of Industry on 26-5-98 for setting up a 100% EOU at its existing plant. The Ministry of Industry granted approval to set up 100% EOU vide letter dated 7-8-98. As the appellants got permission to start a 100% EOU, they made a request to the DGFT for cancellation of the licences under EPCG scheme as unutilised. The request was accepted by the competent authority. In the mean time, the appellants also approached DGFT to approve the goods imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs, ex-bondidng of goods from the warehouse may be allowed in the same manner as normal goods subject to fulfilment of coditions envisaged in the particular scheme under which the goods are intended to be cleared. The contention of the appellants is that the Board has further clarified that in such cases, no contravention of the conditions of the EPCG Scheme is construed to have occurred. The contention of the appellants is that this circular is not followed by the adjudicating authority only on the ground that the permission to extend the warehousing period was expired, therefore the goods are to be treated as improperly removed from the warehouse. 7. The contention of the appellants is that the lower authorities are bound by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods Imported under EPCG Scheme and kept in the Customs Bond and the EPCG Licence cancelled before clearance of Goods - Clarification - Reg. It has come to the notice of the Board that in a particular case an importer had imported two consignments of weaving looms under the EPCG Scheme. The goods were kept in a Customs bonded warehouse. Meanwhile, the importer approached the Government to work under the EOU Scheme. They got the necessary approval from the Ministry of Industry and thereafter they approached DGFT for cancellation of EPCG Licences. The EPCG Licences were cancelled as unutilised. In this connection, a doubt has been raised as to whether the importer should be allowed to switch over to another scheme without contravening the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods in-bond were expired. The Revenue relied upon the decision of Hon'ble Supreme Court in the case of Kesoram Rayon (supra). The issue before the Hon'ble Supreme Court in respect of the rate of duty in respect of warehoused goods. The Apex Court held that the rate of duty on the date when period of warehousing is over, will be applicable. 12. We find that in the present case as per the Revenue the period was expired in 1997 but the Revenue had not taken any action in respect of these goods. It was only on the request made by the appellants vide letter dated 3-11-98 for seeking permission to have private bonded store room and to manufacture goods in-bond under Section 65 of the Customs Act, in view of the permission granted by the Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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