Home Case Index All Cases Customs Customs + AT Customs - 2011 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 593 - AT - Customs100% export-oriented unit (EOU) - Debonding - Whether the appellant is eligible for the benefit of concessional rate of duty under Notification No.21/2002-Cus. dated 1.3.2002 (Serial No.84) in respect of the imported raw materials found in stock at the stage of debonding of the EOU - Held that:- the appellant s claim for the benefit of concessional rate of duty under Notification 21/02-Cus. read with condition 5(b) of Notification 53/97-Cus. is ill-conceived and unsustainable. - At the time of payment of duty on the raw materials present in stock during the period of debonding (16.1.2003 10.7.2003), the appellant was still an EOU and, therefore, they were not entitled to claim such benefit at that time too. Collection of differential amount of customs duty - levy and collection of taxes except by authority of law - Requirment of payment of duty on raw material in stock at the time of debonding - The demand of duty raised in terms of the B-17 bond without invoking Section 28 of the Act - Held that:- A conjoint reading of condition No.2 and condition No.14(3) of the B-17 Bond would indicate that an amount of customs duty (with interest) leviable from the appellant could be demanded through a show-cause notice under Section 28 of the Customs Act and, in the event of default, could be recovered in the manner laid down in sub-section (1) of Section 142 of the Act. - What is fatal to the Revenue is not the non-mention of Section 28 in the show-cause notice but the absence of the essential ingredients of the said Section in the notice. The demand of duty without invoking Section 28 of the Act, i.e., without alleging the necessary ingredients thereof, is not sustainable. - Demand is also not maintainable beyond the normal period of limitation.
|