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2019 (5) TMI 1030 - CESTAT ALLAHABADViolation of import conditions - actual user condition - Benefit of N/N. 21 of 2002-Cus dated 01.03.2002, Serial No.83 of the said Notification - Government of India entity engaged in the manufacture of ‘Polio Drops’ - import of bulk polio vaccine as prepared by World Health Organization - denial of benefit on the ground that appellant did not use the imported bulk drugs for the intended purpose of manufacture of Polio Drops in their factory - time limitation. HELD THAT:- The Notification grants exemption to the Bulk Drugs subject to the conditions that the procedure as laid down in 1996 Rules is followed by the appellant. The said Rules are detailed Rules requiring importer to follow a detailed elaborate prescribed procedure. As already noticed, the said Rules provided concessional rate of duty subject to the conditions that the importer would use the goods in his own factory for further manufacture of the final product - Admittedly in the present case the imported Bulk Drugs has not been utilized by the appellant in his own factory for further manufacture of Polio Drop. Instead the Bulk Drugs stands sold by them to another private party who have though used the same for intended purposes for manufacture of Polio Drops only and further supplied them to the Ministry of Health. Time Limitation - HELD THAT:- The imports took place during the period April to October, 2007 and the sale of the imported goods was during the financial year 2007-08. In terms of the Rules in question the importer is required to maintain the detailed records of the use of the imported goods, which appellant had been undisputedly maintaining By considering the date of sale of bulk drugs as the relevant date, the proceedings initiated by show cause notice dated 27 March, 2015 are even beyond the period of 5 years, as provided in Section 28 of the Customs Act, 1962 - also the appellant is a Government enterprise and according to the well settled law, there cannot be any mala fide intention on the part of the Government to evade any duty - the demand is hopelessly barred by the limitation and is in fact even beyond maximum period prescribed under the law. Demand is set aside on the point of time bar - appeal allowed - decided in favor of appellant.
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