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2018 (11) TMI 766 - AT - CustomsExtended period of limitation - Section 28 of CA - classification of goods - provisional release of the seized goods - N/N. 21/2002-Cus (Sl No 190C) - Held that:- It is quite evident that the issue on merits admittedly stands decided against the appellants and the matter needs to be reconsidered, on the issue of demand by invoking extended period of limitation as provided by the Section 28 of the Customs Act, 1962 - in terms of own admission by the appellant’s major portion of demand is not barred by limitation. It is quite evident that the earliest date of examination in respect of the Bill of Entries, for which appellants have claimed that the demand is beyond normal period of limitation as prescribed by Section 28, is 12.05.2008. Thus in terms of Section 28, the period of limitation which has to be within six months from the date on which the proper officer makes the order for clearance of goods would be some date after 12.05.2008 - In case appellants intended to disagree with the duty demanded, instead of paying the same they should have asked the department to issue a show cause notice on 7th November 2008, and then it was for the department to issue the show cause notice within the prescribed period of limitation which ended after the said date. Thus even if the appellants argument that extended period of limitation cannot be invoked in the present case is admitted, even then the demand cannot be held to be time barred as the all the amounts had been paid by the appellants, prior to expiry of normal period of limitation. It was responsibility of the Appellant to ensure that he was eligible for exemption benefits claimed by him. He was thus required to make a fair declaration claiming the benefit of exemption Notification - Further it is an admitted fact by the employees of appellant who are professionally qualified metallurgical engineers that just by looking at the mill test certificate they can tell whether the consignment to which said mill test certificate pertains is of alloy steel or else. The professional experience of the said persons cannot be disregarded. If the appellants were aware that the goods imported by them were other alloy steels, definitely by declaring them an classifying them as non alloy steels to avail the benefit of exemption is nothing but a misdeclaration. The appellants have misdeclared and have thereby availed the benefit of exemption which was not due to them - the ingredients required for invoking extended period of limitation as provided by the Section 28 are satisfied in the present case. - Since the ingredients for invoking extended period of limitation under section 28 and for imposition of mandatory penalty under section 114A of the Customs Act, 1962 are identical, penalty imposed on the appellants under the said section is justified. Appeal allowed in part.
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