9911796707
TMI Blog2023 (5) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 28 of Customs Act, 1962, along with applicable interest under section 28 AB of Customs Act, 1962, and imposed penalty of like amount under section 114 A of Customs Act, 1962 while also permitting redemption of imported goods, that had been confiscated under section 111 (o) of Customs Act, 1962, on payment of fine of Rs. 31,85,059 in the order of the original authority, is the justifiability of initiation of proceedings in the face of substantive compliance of condition in notification no. 25/2005-Cus dated 1st March 2005 availed for import of 12 consignments of 'parts' to be used in manufacture of 'antenna' at 'nil' rate of duty. 2. In terms of the said notification, the appellant was entitled to duty-free imports of 'parts' in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefrom, the assessee had failed to avail the opportunity of being heard and, the first round of litigation having been carried to the Tribunal [appeal against order-in-appeal no. SK/224/RGD/2013-14 dated 26th August 2013] in due course, was, at the stage of disposal of application for waiver of pre-deposit, remanded by order [final order no. A/511/14/CSTB/CI dated 11th March 2014 in appeal no. C/89392/2013] for fresh decision on consideration of evidence of bona fide usage to be furnished by the assessee before the original authority. 4. On reconsideration, the original authority was, from the correspondence with the owner of the premises indicated sufficient advance notice of return of the property to the owner, unable to appreciate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues before us are, therefore, twofold: compliance with the directions of the Tribunal and the legality of the decision taken in consequence. 6. It is seen from the records that the evidence furnished by the assessee had been taken into consideration by the original authority and detailed findings recorded thereon even as the duty liability was confirmed and other detriments imposed. To that extent, the direction of the Tribunal has been complied with and we are now concerned with the justification adduced by the lower authorities for rejecting the evidence. 7. According to Learned Chartered Accountant, neither of the lower authorities have led with a finding that the goods had not been utilised in the manufacture of 'antennas' cleared on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods on which duty liability is discharged appropriately. Deviation from the prescribed procedure carries with it the assumption of illicit deployment of non-duty paid imported goods. The lower authorities, lacking jurisdiction beyond their designated territories and not in any position to retain oversight implicit in the said Rules, are bound by the necessity of strict observance of the mandate therein which may be overlooked only at the cost of proper tax administration. 10. The appellant, doubtlessly, has been derelict in not taking steps sufficiently in advance for compliance with procedure that would place the utilisation of the goods beyond the pale of suspicion. That the appellant had a not too pleasant relationship with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Vadodara for the same purpose. This was done after giving proper intimation to the appellant-Department and the latter had never raised any objection to that being so done. The Tribunal also, while adjudicating the controversy held that the only failure on the part of the importer was that it did not use the imported inputs in the factory premises registered with the Jurisdictional Assistant Commissioner, in terms of Rules 3 and 4 of the 1996 Rules and instead use the same for the intended purpose, in another unit of its factory with the approval of the appellant-Department. If the observations of the Tribunal are squeezed to be zeroed down, it would come to be noticed as under: "In such circumstances, we find that the assessee cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and, the understandable preference on the part of the appellant for resumption of manufacture over procedural formalities notwithstanding, the levy of duties of customs on the inputs in addition to duties of central excise on the finished product would not be proper application of the law relating to taxation. There is, no doubt, about jurisdictional barriers that weighed with the lower authorities and understandably so. 13. As a Tribunal, charged with the responsibility to ensure delivery of justice, it behoves on us to transcend the jurisdictional delineation impeding proper ascertainment by the lower authorities, and without in any way encroaching upon another jurisdiction, to direct that the original authority, for satisfaction of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
