TMI Blog2021 (3) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... Fee wherein it is provided that if services are rendered by the Custom Officer at a place which is not his normal place of work or place beyond the custom area, overtime is levied even during the normal working hours. In the facts of the case, none of the condition for levy of the MOT charges is satisfied and accordingly, the appeal is allowed by answering the questions in negative and in favour of the appellant to the effect that the appellant would not be liable to pay Merchant Overtime Charges for carrying out examination and supervision of loading of export goods at the factory premises of the manufacturer during the office hours on working day by the Central Excise Officers contrary to the instruction of the Central Board of Excise and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to such instructions? 4. The appellant M/s. Lallubhai Amichand Ltd. is engaged in manufacturing and exporting of excisable goods. The appellant was using the services of Central Excise Officers for examination of export cargo as per the stuffing permission granted to Mumbai Customs. 4.1 The respondent-Central Excise Department issued the show-cause notice proposing to recover Merchant Overtime Tax charges ( MOT charges for short) amounting to Rs. 1,35,135/- for the period 2004-05 and 2005-06 along with interest as per Notification No. 69/98-CUS. (NT), dated 14.09.1998. 4.2 As per show-cause notice, the clearances of the exports were carried out as per the instructions given in permission for factory stuffing granted by Mumbai Customs whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being amount towards MOT charges along with penalty of Rs. 5,000/- and interest. 4.5 Being aggrieved the appellant filed appeal before the Commissioner (Appeals) who by order dated 22.12.2006 allowed the appeal holding that services rendered by the Central Excise Officers while supervising the stuffing and sealing as well as examination of export consignments within the factory premises of the exporters which falls within their territorial jurisdiction and when such services were provided during official hours would not attract MOT charges and no overtime fees would be liable to be recovered or payable for such services. The Commissioner (Appeals) therefore, set aside the order passed by the Adjudicating Authority and consequentially, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Central Excise vs. Sigma Corporation India Pvt. Ltd reported in 2013 (293) ELT 649 (Delhi) wherein the Hon ble Delhi High Court held that no MOT charges would be leviable when services rendered by the officers within his range only for supervision of stuffing work done in the factory of the assessee during the working hours as per section 36 of the Act, 1962 read with Regulations, 1998. 5.2 It was submitted that in case of CCE vs. Commissioner of Central Excise Garnet India Pvt. Ltd reported in 2017 346 ELT 243 (Mad) the Hon ble Madras High Court followed the decision of the Delhi High Court. 5.3 Reference was also made to the decision of the Larger Bench of the Tribunal in case of Commissioner of Central Excise, Rajkot vs. Reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges has been prescribed even during the working hours of the Central Excise Officers working as Custom Officers. It was therefore, submitted that the Tribunal has rightly followed the decision in Appeal No. 672/2007 decided in favour of the department. 6.2 It was submitted that Regulations 1998 defines the Custom Officer, Customs work, working hours and levy of fees for rendering of services. Sub-clause (c) of Regulation (3) of the Regulations, 1998 provides that in relation to jobs to be performed by any Customs Officer during the working hours, there shall be two blocks-one before lunch and the other after lunch respectively and fees shall be charged for the entire block whether the request for the services of such officer relates to en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided that if services are rendered by the Customs Officer at a place which is not his normal place of work or a place beyond the Customs area, overtime is levied even during the normal working hours. 8. Regulation 3 of Regulations, 1998 provides for Levy of Fees for rendering of services by Custom Officer. Regulation 3(3) reads as under: (3) The fees levied under sub-regulation (1) shall be subject to the following conditions, namely:- (a) The levy of fees as aforesaid shall be for a minimum of 3 hours in each case, except in cases of overtime postings immediately preceding or immediately following the working hours of the concerned cadre of officers. (b) The period between midnight and 6 A.M. shall be treated as a block whether the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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