TMI Blog2015 (9) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 3 - SUPREME COURT OF INDIA] and Steel Authority of India v. Collector of Customs, Bombay [1999 (10) TMI 67 - SUPREME COURT OF INDIA] held that circulars issued by Central Board of Excise and Customs are binding on all sub-ordinate authorities – Circular clearly provides that if everything which is required to be done at end of concerned party is done and inspite of that if assessment is not completed within period of six months, authorities will not insist upon renewal of bank guarantees –Aforesaid narration clearly shows that in Petitioner had done everything which is required to be done, even after that Respondent No.1 has not taken any steps for completing assessment –Therefore Petitioner cannot be penalized for non-compliance of dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 the last machinery was installed by the Petitioner. These facts were informed by the Petitioner to the Respondent authorities by communication on 20th June, 2011 and 4th July, 2011. The Assistant Commissioner of Central Excise, Udupi who is having jurisdiction over the factory of the Petitioner informed Respondent No.1 on 20th July, 2011 regarding verification of the machineries received under project import and also regarding installation of the same in the Central Excise premises. On 17th August, 2011 the Petitioner addressed a letter to Respondent No.1 submitting copies of Bills of Entry, bank attested invoices, challan copy of security deposit, bank debit advices, installation certificate, reconciliation statement and letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed by Respondent No.1 to Respondent No.2 for renewal of the bank guarantees. In this premise, the Petitioner has approached this Court. 7. The learned counsel for the Petitioner submits that the Petitioner having done everything at its end, it is for the Respondents to finalize the assessment under Project Import Regulations within a period of sixty days. The learned counsel relying on the circular issued by the Central Board of Excise and Customs dated 4th May, 2011, submits that upon submission of the necessary documents so also upon inspection / verification by the jurisdictional Central Excise authority, as proof of utilization / installation of goods, the authorities cannot insist upon renewal of the bank guarantees. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various sponsoring authorities have been notified in respect of various types of projects. It is to be noted that in some type of projects, not only the Secretary to the State Government or Union Territory concerned has been notified as the sponsoring authority, but in some projects even the Collector / District Magistrate / Deputy Commissioner have been notified as the sponsoring authority. Clause 4 is a residuary clause which deals with any other plant and project and concerned Administrative Ministry or Department has been notified as the sponsoring authority. A perusal of the communication dated 26th March, 2008 (page No.61) which is annexed to the affidavit in reply of the Respondents would itself reveal that the Joint Director, Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the recommendations made by C AG have been carefully gone through by the Board. One of the recommendations made by C AG is that the Government should fix a realistic time frame for finalization of assessments of project import cases after submission of the requisite documents by the importers to ensure that there is no loss of revenue. In this regard, it has been decided by the Board that finalization of assessments under Project imports should be completed within a period of 60 days from the date of submission of required documents by the importer. However, in exceptional circumstances where it is not possible to complete the finalization within the time limit for justifiable reasons, the time limit may be extended by the jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the interests of revenue. 12. The Constitutional Bench of the Apex Court in the case of Collector of C. Ex, Vadodara v. Dhiren Chemical Industries reported in 2002 (139) E.L.T. 3 (S.C.) and the Apex Court in the case of Steel Authority of India v. Collector of Customs, Bombay reported in 2000(115) E.L.T.42 (S.C.) had in unequivocal terms held that the circulars issued by the Central Board of Excise and Customs are binding on all the sub-ordinate authorities. The aforesaid circular clearly provides that if everything which is required to be done at the end of the concerned party is done and inspite of that if the assessment is not completed within a period of six months, the authorities will not insist upon renewal of the bank guar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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