TMI Blog2010 (6) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... sumption. - The decision of the Tribunal rendered in the case of STI India (supra) holding that imported goods were not cleared from the warehouse and hence there cannot be any demand of duty on the same is the correct view in law. - C/30/2007 and C/169/2006 - C/88/2010, - Dated:- 30-6-2010 - Justice R.M.S. Khandeparkar, President, Dr. Chittaranjan Satapathy, Member (T) and Shri D.N. Panda, Member (J) REPRESENTED BY: Shri M.P. Singh, Advocate, for the Appellant. S/Shri S.K. Panda, ft. CDR, Vijai Kumar and Sumit Kumar, SDRs, for the Respondent. [Order per: Chittaranjan Satapathy, Member (T), (Oral)]. - The Division Bench while dealing with the Customs Appeal Nos. C/30/2007 and C/A No.169/2006 has made the following reference for consideration by the Larger Bench:- (a) Whether the entire premises of 100% EOU should be treated as a warehouse? (b) Whether the imported goods warehoused in the premises of 100% EOU is to be held to have been removed from the warehouse before the same is issued for manufacture/production/processing by the 100% EOU? (c) Whether issue for use by 100% EOU would amount to clearance for home consumption? (d) Whether non-filing of ex-b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the goods liable for confiscation under Section 111 of the Customs Act, we find that no penalty is imposable on the appellants under Section 112 of the Act." 5. The above view taken by the Tribunal in STI India (supra) supports the arguments of the Appellants. However, the Division Bench hearing the pre sent appeals has taken a contrary view leading to this reference. 6. Shri M.P. Singh, learned Advocate appearing for the Appellants states that the EOU Scheme operates taking advantage of the Manufacturing in Bond provisions under Section 65 of the Customs Act, 1962. He states that before a 100% EOU can start functioning the place it is located in is declared as a ware housing station. Thereafter, the entire premises of the unit is licensed as a private bonded warehouse under Section 58 of the Customs Act, 1962. The factory of the appellants is, therefore, a part of the Customs Bonded warehouse and due per mission has been granted for undertaking manufacturing operations therein utilizing duty free material received in the warehouse. The appellants have not filed any ex-bond Bill of Entry nor they have removed any of the impugned goods outside the warehouse. Hence, according t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not required to give our opinion on the same. 8. We have carefully considered the referral order, submissions made on behalf of the appellants and submissions made on behalf of the department. We find that the issues under reference pertain to cases of demand of Customs duty. The Customs Act, 1962 is a self-contained legislation dealing with levy and collection of customs duty on imported and export goods and allied matters. In so far as the imported goods are concerned, Section 46 of the Act provides for presentation of a Bill of Entry for home consumption or for warehousing. Section 47 deals with clearance of goods for home consumption. Warehousing provisions are contained separately in Chapter IX of the Customs Act. "Warehouse" is de fined in Section 2(43) of the Act. Under Section 58 of the Act, a warehouse can be licensed only at a place declared as a warehousing station under Section 9 of the Act. Section 65 of the Act deals with manufacture and other operations in relation to warehoused goods. Section 66 contains the power to exempt material used in the manufacture of goods in a warehouse. Section 68 deals with clearance of warehoused goods for home consumption and Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumption. Section 65 of the Act which deals with manufacturing in bond on the other hand, does not require any filing of ex-bond bills of entry or payment duty before taking warehoused goods for manufacture inside the bonded premises. We also find that Section 66 of the Act empowers the Central Government to exempt imported material used in a warehouse. It is thus clear that neither the scheme of the Act nor the provisions contained in the Manual require filing of ex-bond bills of entry or payment of duty before taking the imported goods for manufacturing in bond nor there is any provision to treat such goods as deemed to have been removed for the purpose of Customs Act, 1962. The Warehousing provisions under the Customs Act, 1962 deals with two kinds of removals from the Customs bonded warehouse; (i) Removal under order of clearance of the proper officer after filing ex-bond bill of entry and payment of duty, etc. as provided under Section 68, and; (ii) Improper removal for which Section 72 provides for demand of duty, penalty, interest etc. (iii) Impugned goods authorized to be used for in-bond manufacture under Section 65 do not fall under any of these categories. 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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