Home Case Index All Cases Customs Customs + AT Customs - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 403 - CESTAT NEW DELHIDemand of duty - Diversion of duty free material imported in terms of Notification No. 53/97-Cus., dated 3-6-1997 - Confiscation of goods - Held that:- Admittedly the goods in respect of which duty stands confirmed against the appellant were found in the factory premises of the appellant. As such it can be safely concluded that the goods in question were not diverted by the appellant in the local market. Surprisingly neither any demand stands raised by the Revenue nor confirmed in the impugned order in respect of the duty free imports which were actually diverted in the local market. Inasmuch as the fabrics in question were still found in the factory of the appellant, no demand of duty can be confirmed in respect of the same on the ground that the previous consignments of imported fabrics stand diverted by the appellant. No presumption can be made that the said present fabric was also likely to be diverted. Admittedly the appellant’s factory had 35 sewing machines as also the cutter installed in their factory, required for stitching of the ladies’ ready-made garments. The manufacturing and other operations are required to be carried out in the said 100% EOU under Customs bond. No ex-bond bill of entry is required to be filed or any duty is required to be paid on warehoused goods before taking them for manufacture inside bonded premises. The imported warehoused goods in the said 100% EOUs cannot be treated as having been removed for home consumption so as to require any payment of duty leviable thereon - the fabrics in question were still in the 100% EOU, no duty liability can arise in respect of the same - Following decision of Paras Fab International v. CCE, Kandla [2010 (6) TMI 184 - CESTAT, NEW DELHI] - Decided in favour of assessee.
|