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2010 (5) TMI 637

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..... ere cleared from the warehouse of the consignor but were not received in the warehouse of the consignee. Undoubtedly, there is a claim of damage to the goods. The Mahazar report does not give detailed description of the alleged damage. It merely states that some of the granite slabs have developed cracks and some were completely damaged, appeal succeeds and the orders passed by the Commissioner (Appeals) as well as the Deputy Commissioner are hereby quashed and set aside and the matter is remanded to the Deputy Commissioner to deal with the Show Cause Notice in accordance with law and bearing in mind the observations herein and pass an appropriates order. The appeal stands disposed off. - C/149/2006 - 854/2010, - Dated:- 25-5-2010 - Just .....

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..... pect of the said goods which have not been actually accounted for IUT. The notice was contested by the respondents and the proceedings were sought to be dropped by the order dated 27-10-2004 by the Deputy Commissioner, Bangalore. 4. Being aggrieved, the department preferred an appeal which came to be disposed by the Commissioner of Customs (Appeals) by order dated 31-1-2006 confirming the order passed by the Deputy Commissioner. 5. Ld. DR by assailing the orders passed by the lower authorities submitted that as regards the goods those are removed from one warehouse to another warehouse, if such goods are not received by the consignee then it is the responsibility of the consignor to pay the duty on such goods in view of the provisions o .....

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..... Advocate appearing for the respondents on the ground that the same relates to transfer of goods from domestic unit to EOU unit. 8. The facts that the goods in question were sought to be removed from the warehouse of the respondents to be transferred to the warehouse of the consignee namely, M/s. SVG Export Pvt. Ltd. and the same was sought to be transported on the relevant date are not in dispute. It is also a matter of record from the Mahazar report that the goods were in the process of transportation, that the vehicle carrying the goods when reached at the entrance gate of the premises of the consignee met with an accident and that the goods spilled over the ground near the entrance gate of the premises of the consignee. Mahazar report .....

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..... er may require that the transport of the goods between the two warehouses be under the supervision of an officer of Customs, the owner meeting the cost of such supervision. Regulation three states that where the goods are to be removed from one warehouse to another in a different town the proper officer may require the person requesting removal to execute a bond in a sum equal to the amount of import duty leviable on such goods and in such form and manner as the proper officer deems fit. Regulation 4 provides that the terms of the bond shall be that if the person executing the bond produces to the proper officer, within three months or within such extended period as such officer may allow, a certificate issued by the proper officer at the p .....

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..... tion of the receipt of those goods in the warehouse of the consignee. The Mahazar report is merely in relation to the accident and the claim to the damage to the product. There is no record to show that the damaged goods were either received back or those goods were completely abandoned. The records merely disclose that the goods were cleared from the warehouse of the consignor but were not received in the warehouse of the consignee. Undoubtedly, there is a claim of damage to the goods. The Mahazar report does not give detailed description of the alleged damage. It merely states that some of the granite slabs have developed cracks and some were completely damaged. Undisputedly, the total quantity of the granite slabs is 1335.454 Sq Ft. The .....

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..... h clearly prescribe the procedure to ensure the revenue to the Government in case the goods are not received in the warehouse of the consignee. In what circumstances the goods can be said to have been arrived in the warehouse of the consignee have been clearly stated in Rule 20(4) of the Central Excise Rules, 2002 which specifically requires receipt of the goods in the warehouse of the consignee. Being so, the contention that mere arrival of the goods in the premises of the consignee would satisfy the requirement of the provisions of law cannot be accepted. 15. The decision in the matter of Madhav Marbles and Granites Ltd. (supra) has no application to the facts of the case in hand. In the said case, the goods were damaged in transit and .....

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