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TMI Blog2005 (5) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as follows - (i) Imports made pursuant to the agreements entered and the santious granted of various raw material and components claiming the benefit of Notification 13/81-Cus., dt. 9-2-81 as amended and subsequent Notification dt. 53/97-Cus., dt. 3-6-97 the EOU had also procured certain raw material and components of indigenous sources under benefit of Central Excise Act 1944 Notification Nos. 123/81-C.E., dt. 2-6-81 57/94-C.E., dt. 1-3-94 1195-C.E., dt. 4-1-95 as amended. (ii) the unit had commenced production from 1-6-90 had made physical export only for 4 years i.e 1990-91 to 1994-95 with value addition, instead of 10 years as per the letter of intent of Ministry of Industry and Company Affairs Government of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 75,000/- under Rule 173Q was imposed under the Central Excise Rules, 1944 (as it existed) for the contravention of the Central Excise contraventions holding the goods so brought to be liable to confiscation for not having been used for the purpose they were brought. (iv) Warehouse licence issued under the Customs Act were cancelled. (v) Penalty of Rs. 75,000/- was imposed on Smt. Abha Bhargara, Director incharge under Rule 209A and Rs. 40 lakhs under Section 112(a) of Customs Act, 1962 for non-fulfilment of Export obligations and violation of the provision of relevant notification and Customs Act 1962. She being Director Incharge and responsible for day to day affairs of the unit. Hence these appeals. 2.1 After h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their removal or expiry of Bond Period. The Customs Act, 1962, provides for an extension of the three year Bond period for such goods, as in this case, which are not likely to deteriorate. The Commissioner should have granted such an extension in this case or come to a definite conclusion why such an extension was not to be granted in case of this EOU which is essentially set up to encourage exports and imported goods are permitted to be imported and kept Duty Free in their Warehouse for that purpose. In any case, if the Bonded Warehouse licence is to be found to be cancelled, then Section 61 itself of Customs Act, 1962 provides for a notice of seven days to recover duty/interest on such goods to clear them or to transfer them to another w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an automatic extension of warehousing period and vide circular dated 27-12-93 have clarified "a policy decision has been taken by the Board for grant of licence to 100% EOUs under Section 58 of the Customs Act, 1962, valid for a period of five years. Such licence may be extended for a further period of five years or for such period of export obligation as prescribed by SIA" and vide circular dated 13-1-94, Board observed that Bonding is a formality since limits are already agreed by the inter Ministerial Committee and SIA in the Department of Industry clarified that Bonding could be decided at the level of Assistant Commissioner itself and vide circular dated 16-2-96 clarified that Section 65 would adequately cover the case of a EOU which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 117 of the Customs Act, of 10,000/- as imposed cannot be upheld as during the relevant period the penalty provided thereunder was only of Rs. 2000/- and no reasons exist to call for a penalty under Section 117 of the Customs Act, 1962 is the facts and the Brand Policy instructions on extension of warehousing period is applicable in this case. 2.2 When extension of the warehoused goods is not being dealt with as per Board's instructions therein the cancellation of the warehouse herein is not called for the cancellation order arrived is to set aside. 2.3 The ld. Advocate for the appellant makes a plea for surrender of the warehoused goods. The same is to be made to the proper officer and be dealt with that officer as per laws, application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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