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TMI Blog2017 (3) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 temporary posts, of customs officials of various ranks, to manage the customs work in the ICD. One of the conditions for managing the ICD is that the appellants have to pay Cost Recovery Charges @ 185% of the salary of the staff deployed to the Government. The present appeal is relating to appellant's liability to pay such cost recovery charges for the period 1.4.2009 to 31.12.2012 amounting to Rs. 4,12,94,397/-. The jurisdictional Commissioner insisted on the full recovery of the said amount with interest. The proceedings were also initiated against the appellant for, among other things, recovery of the above said amount. A show cause notice dated 28.2.2013 was issued to the appellant to recover the said amount in terms of Handling Carg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sought afresh following the prescribed procedure. The Original Authority further held that as the appellants have not paid the Cost Recovery Charges, their application for exemption cannot be considered. 3. Ld. Counsel for the appellant strongly contested the findings in the impugned order. He narrated the chronology of events starting from Circular dated 14.12.95 of the Board providing the guidelines for custodian. He submitted that the appellants were appointed as Custodian of ICD, Jodhpur vide Public Notice No.18/2001-Customs dated 27.06.2001 by the Commissioner of Customs, Jaipur. One of the conditions of the appointment was that the appellant shall pay Cost Recovery Charges as determined, considering the number of officials deployed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Charges as well as applicability of exemption to the appellant from payment of such Recovery Charges are to be examined and decided by the CBEC, Ministry of Finance. The Commissioner has not indicated in his impugned order whether the matter has been reported to the Ministry and specific advice has been taken regarding the appellant's eligibility for exemption from Cost Recovery Charges. 6. Ld. Counsel pleaded that the Commissioner acted without authority of his own and confirmed the liability towards Cost Recovery Charges without due consideration of all the guidelines issued by the Ministry and without reference to CBEC. 7. Ld. AR submitted that in terms of the Public Notice issued appointing the appellant as Custodian as well as the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioners were to report the performance of individual ICDs. The Ministry called for a report in this regard. We also note that the permission granted to the appellant to manage the ICD at Jodhpur has been extended for further period of 5 years by the jurisdictional Commissioner and the same was communicated to the appellant on 31.03.2010. It is seen that the Dy. Commissioner, ICD, Jodhpur informed the appellant that Cost Recovery Charges are recoverable for the year 2009-2010 as the appellants have fallen short of bench mark of 7,200 documents to be processed in that year. The appellants vide their letters dated 16.12.2013 and 31.10.2014 have specifically prayed for waiver of Cost Recovery Charges in terms of guidelines issued by the Minist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery Charges by the Ministry. Later, the Ministry laid down certain guidelines to state that such exemption will be given year to year based on the report given by the jurisdictional Commissioner. Keeping these facts in mind, we hold that the present impugned order is not legally sustainable. The exemption granted to the appellants as well as the request made by the appellants for such exemption subsequently are to be examined by the competent authority for a proper decision. The Commissioner has to place all the records before the competent authority for a decision and thereafter only the liability of the appellant for Cost Recovery Charges, if any, can be finalized. With these observations, we set aside the impugned order and remand the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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