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2015 (9) TMI 818 - AT - CustomsViolation of notification No.20/99-Cus and 16/2000 Goods not used in manner intended Appellants had shut down plant and disposed entire plant and machinery consisting of old as well as new machinery by e-auction Imported goods which were cleared under concessional rate of duty forming part of plant and machinery were also disposed Such disposal was alleged by Customs as violation of condition of notification No.20/99-Cus and 16/2000 on ground that imported goods have not been put to intended use but were sold DRI seized imported machinery but were released provisionally on execution of bond and giving of bank guarantee Differential customs duty was also demanded alongwith redemption fines and penalty Held that:- Appellants took decision to close down Plant within 2 years of importation Reasons for shut down of plant is irrelevant in so far as customs exemption availed under Notification No.20/99 and 16/2000 is concerned Therefore, disposal of imported goods did not serve intended purpose of notification In spite of being fully aware of fact that imported goods were to be used for intended purpose, appellants failed to fulfill undertaking given to Customs authorities as required by condition of notification That warranted appellant to pay duty in event of failure of not using goods for manufacture of fertilizer. Members of successful bidder/awardee in their statements admitted that they have to bear all duties and taxes as stipulated in e-auction but there was no mention of any payment of customs duty on imported machineries When whole plant was sold to third party, nothing prevented appellant to collect differential customs duty on imported goods contained in plant which was sold Appellant cannot take shelter on ground that mere installation of imported machinery and commissioning plant for short period shall absolve it from liability Therefore, adjudicating authority rightly demanded Customs duty from appellant who are owners and beneficiary of imports Decided against Appellant.
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