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2014 (3) TMI 718 - AT - CustomsEnd use base import of Cannulae and Needles as duty free for use in the manufacture of Disposable syringes with or without needles - despite request no details were provided in respect of needles - But entire quantity of Cannulae was claimed to be waste as no finished goods were produced out of this quantity. - Similarly 2,24,19,597 pcs of Needles claimed to be waste and scrap was beyond the permissible limit of 5% during the period December, 2000 to April, 2003. - Extended period of limitation - Held that:- It is strange that the ld. Authority below has not looked into arise of waste and scrap relating to each financial year covering November 1996 to April 2006. He only looked into the wastage for the financial year 2002-2003. When he made a finding that no records were maintained by the appellant to establish generation of waste and scrap, quantum of goods destroyed does not provide any basis to pass a summary order by him. His order is not self speaking. Appellant after providing information for solitary period again requested to ignore the same having mistakes crept therein. No records being maintained by the appellant to provide year wise reconciliation, ld. Authority should have carefully examined quantum of import of input and issue thereof for use in manufacture, arise of output out of such manufacture and quantum of loss occurred in the process in each case to apply the low. A sketchy picture was drawn by him without year wise analysis. When there is fraud against Revenue no plea of time bar is available to appellant following the ratio laid down in CC Vs. Candid Enterprises [2001 (3) TMI 101 - SUPREME COURT OF INDIA] since fraud nullifies every solemn act. Matter remanded back with a direction that the Adjudication Authority to look into the quantity of input (both goods) imported in each financial year, quantity there of issued and waste and scrap generated out of use thereof in manufacture of finished goods during different financial years covered by the period from November 1996 to April 2006 and ascertain whether each year’s wastage was within the prescribed limit of SION. - Decided in favor of revenue.
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