TMI Blog1995 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, 1979, Central Government issued Notification No. 45 under the Customs Act exempting the bulk drug `Refampicin' from whole of Customs duty if the said bulk drug is used in the manufacture of life saving drug viz. `Rifampicin Capsules'. On September 22, 1981, Central Government issued Notification No. 208/81 exempting above mentioned life saving drug viz. `Rifampicin Capsules' also from whole of Customs duty. Pursuant to the said Notifications, petitioners imported 950 kgs. of above mentioned bulk drug `Rifampicin' for use in the manufacture of life saving drug `Rifampicin Capsules'. Pursuant to the above Notifications, petitioners executed bonds in favour of the Customs by which the petitioners agreed to pay on demand the Customs duty if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the bonds and ordered payment of Rs. 22,99,044/- as duty on the ground that the imported bulk drugs were not used for manufacture of life saving drugs. The order of the respondent No. 3 proceeds on the basis that when bonds are given by the petitioners and pursuant to the bonds the goods are imported, they have to be used for manufacture of life saving drugs and since the same end use is not fulfilled, petitioners were liable to pay Rs. 22,99,044/-. Being aggrieved by the said order, the petitioners preferred an appeal to the Collector of Customs (Appeals). By order dated April 10, 1986, the Collector of Customs (Appeals) came to the conclusion on the above facts that the documentary evidence clearly proves that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t produced by the petitioners. By the impugned order dated August 1, 1986, the respondent No. 3 on remand once again came to the same conclusion. By the said order, respondent No. 3 did not accept petitioners' offer to pay the differential duty at the rate of 2% on the ground that it cannot be decided in adjudication proceedings. Being aggrieved by the impugned order dated August 1, 1986, petitioners once again preferred an appeal to the Collector of Customs (Appeals). By the impugned order dated February 24, 1987, the Collector of Customs (Appeals) came to the conclusion that in adjudication proceedings, it is not permissible to the respondent No. 3 to sanction the drawback and hence in view of this, petitioners should pay Rs. 22,99,044/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -export the said goods against free shipping goods. Shri Bhatt pointed out that under Section 74, petitioners were required to pay the entire duty of Rs. 22,99,044/- and thereafter they were entitled to claim drawback of 98% whereas in the present case, since re-export was permitted by the Customs under the above circumstances, the petitioners in order to show their bona fides offered to pay duty to the tune of 2%. Shri Bhatt contended that under the above circumstances, the Assistant Collector of Customs i.e. respondent No. 3 erred in taking hypertechnical view of the matter. Shri Bhatt further contended that when the Customs permitted the petitioners to re-export the goods even though the petitioners had not put the goods to end use. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, the Collector came to the conclusion that there was a technical lapse on the part of the petitioners. Actually, the Collector of Customs (Appeals) should have decided the matter. There was no need to remand the matter. In any event, the matter stood remanded. Respondent No. 3, after remand, has only proceeded on the footing that conditions mentioned in the bonds should be complied with and since end use certificate has not been produced, respondent No. 3 directed petitioners to pay Rs. 22,99,044/-. We are in agreement with the contention advanced on behalf of the petitioners that in the present case the view taken by respondent No. 3 operates harshly on the petitioners. If the findings of respondent No. 3 as contained in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
