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Issues:
Claim for exemption under Notification No. 40/78-Cus. for importing a plastic extruder, Allegation of not producing literature in support of claim, Jurisdiction of the appellants as Letter of Authority holder, Liability under Section 147 of the Customs Act, Recovery of duty from agent. Analysis: The appeal challenged an order-in-appeal dated 11-4-1990 regarding the exemption claimed by the appellants for importing a plastic extruder under Notification No. 40/78-Cus. The authorities initially allowed the exemption but later demanded duty, alleging a lack of supporting literature. The appellants argued that the matter was examined by SIB, and technical details were submitted, leading to a favorable recommendation for exemption. However, a show cause notice was served later, which the appellants contended was time-barred. The crux of the argument focused on jurisdiction, emphasizing the role of the Letter of Authority holder in clearing goods. The Tribunal examined the details of the case, noting that the appellants acted as a Letter of Authority holder for Passive Components Pvt. Ltd. as per para 383 of the Handbook of Import Export Procedures, 1982-83. The relevant para authorized the licensee to appoint an agent for importing goods, with the licensee retaining ownership. The Tribunal agreed with the appellants' argument that their liability ceased upon clearing the goods, citing Section 147 of the Customs Act, which allows recovery from the agent only if efforts to recover from the owner fail. Referring to legal precedents and the provisions of Section 147(3) of the Customs Act, the Tribunal emphasized that duty could only be demanded from the agent if all steps to recover from the owner were taken and failed. The Tribunal highlighted that the demand should have been addressed to Passive Components Pvt. Ltd., the actual owner, and not the appellants as the agent. Since no efforts were made to recover duty from the principal, the Tribunal concluded that duty was not payable by the Letter of Authority holder acting as an agent. Consequently, the impugned order was set aside, and the appeal was allowed on the limited question of jurisdiction.
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