TMI Blog2018 (10) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... e imports were effected after completion of the exports, it is not evident that these imports took place after the redemption of the bond and that the transfer to job-worker thereby permissible - A harmonious reading of the proviso introduced later and the main provision would lead to the inevitable conclusion that, even if utilised by a job-worker for conversion, transfer of the imported inputs is not permissible. Demand u/s 28 - Held that:- As there is no evidence on record of existence of the pre-requisite warranting invoking of the extended period, though the lower authorities have held that there was misdeclaration/ suppression of fact at the time of import and, therefore, the demand under section 28 was not warranted. Confiscati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hava Sheva, Mumbai II which has upheld the order of the lower authority to the extent of recovery of duty of ` 5,51,057/- under section 28 of Customs Act, 1962 and imposition of penalty of like amount under section 114A of Customs Act, 1962. The confiscation and redemption fine imposed by the original authority has been set aside. 2. Proceedings were initiated for recovery of duty on beta napthol , imported against advance authorization as per the export promotion scheme prevailing in 2007-08 under notification no. 93/2004-Cus dated 10th September 2004, on the ground that the said goods had been diverted to another manufacturer under the guise of job-work without receiving back the goods, as such or after processing. According to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... converted by job-worker would not constitute transfer of imported raw material. Relying upon the definition of transfer in Black s Law Dictionary, she submits that neither the interest in, nor the rights to, the goods had been transferred to the jobworker as to constitute contravention of stipulation in the said exemption notification. She also relied upon the decision of the Tribunal in Silver Line Plastpack Pvt Ltd v. Commissioner of Central Excise, Bhavnagar [2016 (343) ELT 281 (Tri.Ahmd.)] which has held that, in the context of notification no. 32/2005-Cus with actual user condition, utilization of job-worker for conversion is tantamount to own use. It is further contended that the proviso in condition (vii) in notification no. 93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory for any kind of process and that such conversion by a job-worker was permissible only after the redemption of the bond. Though Learned Counsel asserts that the some of the imports were effected after completion of the exports, it is not evident that these imports took place after the redemption of the bond and that the transfer to job-worker thereby permissible. Undoubtedly in re Tetra Pak (India) Ltd, the Tribunal did hold that the movement to a job-worker does not constitute a transfer. Nevertheless, the decision was rendered in the context of restriction on transfer/sale of imported raw materials. The relevant notification prescribes that the transfer or sale is liberalised to the extent of conversion of raw materials by a job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th confiscation under section 111(o) for failure to comply with the post-importation conditions. In the present instance, that is of no relevance because provisions of section 112 has not been invoked for imposition of penalty. The redemption fine has been set aside by the first appellate authority on the ground that the goods are not available for confiscation. 9. Considering the failure on the part of the lower authorities to establish that the appellant had suppressed relevant facts at the time of import, the lower authorities has travelled beyond the normal period of limitation and is, therefore, not correct in law. In the absence of valid grounds for invoking the extended period, the recovery itself is jeopardized and for which reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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