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2017 (10) TMI 469 - AT - CustomsValuation of imported goods - foreign liquor - rejection of declared value - Since, the prices of the importer-appellants were much below than the declared prices of DDFSPL, the Department has entertained the view that there was deliberate attempt to undervalue the goods and evade substantial customs duty - Extended period of limitation - Held that: - The Bills of Entries, in the present case, were filed by the importer-appellants between the period August' 2009 to February 2013. The provisions for recovery of short-levied or non-levied duties are contained in Section 28 of the Customs Act, 1962. The said statutory provision mandates the time limits for issuance of the show cause notice in different circumstances - On a conjoint reading of both sub-sections (2) and (4) of Section 28 ibid, it would reveal that in case of short levy or non-levy of duty, other than the situation involving collusion, wilful mis-statement and suppression of facts, the proper officer shall issue the show cause within a period of one year from the relevant date, calling upon the concerned person to show cause, as to why the duty cannot be recovered from him. However, in exceptional circumstances, where non-levy or short levy of duty is by reason of fulfilment of the above ingredients, then instead of the period of one year, the proceedings can be initiated within five years, for recovery of such duty - In the present case, it is an admitted fact on record that the show cause proceedings were not initiated within the normal period of one year from the relevant date i.e. filing of Bills of Entries and payment of duty on the declared value. In view of the settled position of law and in view of the fact that the Department has not brought on any iota of evidence of the involvement of the importer-appellants in the fraudulent activities, concerning collusion, wilful mis-statement and suppression of facts with reference to value of imported goods, in our considered view, the demand could not have been issued for extended period - In the case in hand, it is an admitted fact that the show cause notice has been issued beyond the period of one year from the date of filing the Bills of Entries and payment of duty on the declared value. Thus, the proceedings are wholly barred by limitation of time as per the dictates of Section 28 ibid. The appeals by the importer-appellants are to be allowed on the ground of limitation - decided in favor of appellant.
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