9911796707
TMI Blog2010 (9) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... xiliary and additional duty, an amount of ₹ 52,64,322.07 being differential customs duty payable by the appellants on the imported OE components obtained in the sub-assemblies cleared during the period from 23-5-1990 to 31-12-1994 and an amount of ₹ 18,66,114.81 being amount collected by the appellants towards customs duty in excess of the duty leviable under the Schedule of the Tariff Act and not paid to the Government. Further, the goods worth ₹ 2,10,000/- were ordered to be confiscated under Section 111(o) of the Customs Act for non-compliance of the Customs Notification No. 222/87-Cus., dated 1-3-1987, 146/92-Cus., dated 26-3-1992, and 72/93-Cus., dated 28-2-1993, further allowing release of the same on payment of rede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availing the benefit under the said Notifications. Thirdly, it is sought to be contended that the fact that there was temporary diversion of the imported components for sale as spare parts was duly disclosed to the Department and, therefore, no mala fide could be attributed to the appellants and for that purpose even to their predecessors. Attention is also drawn to the decision in the matter of Union of India v. Eicher Motors Ltd., reported in 2007 (210) E.L.T. 345 (M.P.), while contending that the issue, as to whether the imported components which were not used in the manufacture of LCV by the assessee i.e. diverted for meeting the spare part requirements for vehicles under warrants scheme, in those circumstances, whether the assessee wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at, the fact of violation of the conditions of the Notifications has been clearly admitted by the appellants and the investigation carried out clearly establishes the allegation against the appellants and being so, there is no case to find fault with the impugned order. 5. As already stated above, the issue essentially relates to non-compliance of the condition regarding use of the imported goods by the appellants' predecessors which amounted to violation of the condition of the said Notifications. Apart from other materials on record, the affidavit filed by Shri Vaidyanathan, Manager (Materials), before the adjudicating authority in support of the reply to the show cause notice on behalf of the appellants clearly reads thus : "At th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erly utilized in the manufacture of vehicles and a certificate on the manufacture was also being issued by the Assistant Commissioner after due verification." 6. The above statement of fact by Shri Vaidyanathan, Manager (Finance) of the appellants made in support of the reply to the show cause notice, discloses clear admission of the basic facts stated in the show cause notice and, prima facie, discloses justification for confirmation of demand. The letter dated 11th May, 2010 produced by the advocate for the appellants also discloses two clauses from the Amalgamation Scheme approved by the competent authority at the time of amalgamation of the predecessor with the appellants. They read thus : "To take over and discharge the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where a manufacturing firm, as a firm, is taken over by another firm, which continues to run the manufacturing firm in its original name but is managed by the new firm. In that event the manufacturing firm continues to function, though under a new management. The liability for duty in respect of the pre-take-over manufactures could, in that case, be enforced against the new management also, since the firm continues to function, though under a new management. The present case is not one such. It is one where the factory (and also stock) is purchased by the appellants and the manufacturing activity is thereafter carried on by the new firm as a distinct legal entity, different from the original firm. The Appellants are not a continuation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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