TMI Blog1995 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the notification. The appellants had been licensed as a private bonded warehouse under the Customs Act, 1962. A certain consignments of sodium peroxide was imported at Calcutta Customs House during April, 1989 to April, 1990 which were cleared for warehousing on into bond Bills of Entry accepting the appellants' declaration that the goods were consumables required for manufacture of the export product which were covered under the Notification No. 13/81. The goods were thereafter cleared from Calcutta Customs House and brought to the EOU at Randia, in Orissa. Subsequently, the Superintendent of Custom and Central Excise at Randia issued show cause notice's during June 1989 to May, 1990 alleging that sodium peroxide imported was used as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te operational control, and in terms of the condition of the bond as prescribed for EOU required to be executed by the importer, the Assistant Collector having jurisdiction over the EOU would be competent to demand the duty leviable on the goods as are not proved to his satisfaction to have been used in the manufacture of the export product. In such a view of the matter, the referring Bench found itself unable to concur with the findings of the Tribunal on the jurisdiction as given in the case of Ferro Alloys Corporation Ltd. (supra), wherein the Tribunal had held that if any fresh look is required to be undertaken by way of reassessment in respect of warehoused goods, it can be undertaken only by the concerned Custom House which has made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (71) E.L.T. 188 (Tribunal) on the same notification wherein the Ferro Alloys Corporation Ltd. decision was followed. Citing AIR 1976 Supreme Court 410 - Manganese Ore (India) Ltd. v. Regional Assistant Commissioner of Sales Tax, Jabalpur and AIR 1965 Supreme Court 845 - Sajjan Singh and Others v. The State of Rajasthan and Others, the learned Counsel urged that a precedent has to be followed except for extraordinary and special reasons and that it cannot be ignored except for substantial and compelling reasons. Continuing the learned Counsel argued that the appellants being licenced private bonded warehouse as per provisions of Section 68 and 15(1)(b) of Customs Act, 1962 the stage of duty demand in the warehouse goods arises only at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Act, 1962 also would apply to E.O.U. 4.The submissions made by both the sides have been carefully considered. The referring Bench had found that they were unable to agree with the earlier decision of the Tribunal in the case of Ferro Alloys Corporation Ltd. (supra) as regards jurisdiction to raise demand of duty on exempted goods found to be not utilised as per terms of exemption by an E.O.U. The Ferro Alloys Corporation decision has held that where original assessment into bond had been done at the Custom House through which the goods were imported, then any reassessment in respect of the warehoused goods can be done only by the same Custom House and the officers having jurisdiction over the warehouse cannot disturb the classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material in the export product. Under that Scheme the material is imported duty free on the strength of Duty Exemption Entitlement Certificate issued alongwith the Advance Licence in terms of the exemption notification. The DEEC indicates separately the quantity and description of material allowed to be imported under exemption and also the quantity and description of the export product which is to be produced out of the imported exempted material which is to be exported in fulfilment of the export obligation. In such a scheme the goods are cleared on filing Bill of Entry for Home Consumption at the port of import. There is no clearance initially on assessment into bond and a subsequent clearance on ex - bond Bill of Entry at all. The DEEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, on the other hand, more aptly covered such a situation. Para-6 of the Instrumentation Ltd. decision runs as follows : - * * * * * * * * * * * The Tribunal has held in these two decisions that in a situation of clearance of warehoused goods, the jurisdiction for raising demand for short levy or refund on reassessment will be with the proper officer granting ex-bond clearance. This view of the Tribunal finds support in the Madras High Court decision in the case of Collector of Customs, Madras v. Tungabhadra Fibres Ltd., reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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