TMI Blog2001 (8) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... September, 1989 to February, 1990 a total of 547962 tons of these plates. It claimed and was granted benefit of exemption from duty under Notification 513/86. The notification permits import of raw materials and components required for manufacture of goods supplied to Oil and Natural Gas Commission, Oil India Ltd. and Gas Authority of India Ltd. It requires the importer to execute a bond binding itself to fulfil the obligation and conditions stipulated in the notification to pay on demand the duty payable but for the exemption on that quantity of raw materials and components which have not been proved to the satisfaction of the licensing authority to have been used for the purpose specified in the notification and requires the importer to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of the notification on the ground that the plates were not utilised in the manufacture of thread protectors, proposed confiscation of these goods and penalty upon the appellant and on its officers. In November, 1991 the Collector passed orders demanding duty on the goods, confiscating the 271 tonnes of plates seized from the appellant with an option to clear it on payment of fine, imposed penalty on the appellants. This order is challenged in these appeals. 5.Collector has invoked the extended period contained in the proviso under sub-section (1) of Section 28 of the Act. He finds that the appellant suppressed significant facts while claiming clearance of the goods in terms of notification 513/86. 6.It has to be accepted as a general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to conclude that it did not at any point of time have any serious intention to utilise the imported goods in the manufacture of the goods to be supplied to the ONGC. To begin with, it is clear that when the appellant asked for the import licence for the stainless steel plats in March, 1989, and the licence was issued in July of that year, the appellant did not have any machinery in its factory for making the thread protectors from out of stainless steel plates. The thread protectors are basically caps screwed on to the threads on either end of pipes, to protect the threading from damage during transit and unloading. 8.Bharat Vora, the managing director of the firm, in his statement on 4-11-1990 accepted (Paragraph 17) that due to certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inless steel was not used in the manufacture of the thread protectors supplied to ONGC and had been sold. The licensing authority was Joint Chief Controller of Imports Exports, Mumbai. Instead of informing the licensing authority, the importer by letter dated 26-5-1990 made an application to the Chief Controller of Imports Exports at New Delhi for discharge of the legal undertaking on the ground that the conditions of the first licence had been fulfilled. Again on 11th July, the importer informed the Chief Controller of Imports Exports at New Delhi for permission to dispose of the stainless steel plates. The subsequent application for discharge of the legal undertakings and permission to sell the goods imported against the second lice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was spread over quite a long period. In the import licence was issued in July, 1989. The import commenced in September, 1989 and the supply to be made in February, 1990. During the same period, September, 1989 to February, 1990 the appellant supplied ONGC with mild steel thread protectors, kept selling the stainless steel plates in the market without permission; informed the Chief Controller of Imports and Exports at Delhi of the utilisation of the stainless steel plates; led the Chief Controller of Imports and Exports at Delhi to believe that the stainless steel plates had been utilised for supply to ONGC. How the Chief Controller of Imports and Exports accepted the claim of fulfilment of export obligation while considering the applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification. In the background of these facts that we have considered the claim made by the importer for the benefit of the notification is nothing less than deliberate and conscious attempt to mislead the Department. Therefore the finding of the Collector that the extended period contained in the proviso to sub-section (1) of Section 28 of the Act would apply, has to be confirmed. 14.We agree that the demand for duty cannot be made with regard to the 271 tonnes of the stainless steel which ordered to be confiscated. The decision of the Tribunal in INDSU v. CC [1998 (100) E.L.T. 385 (Tribunal)] and Khub Engineering Industries Pvt. Ltd. v. CC [1999 (114) E.L.T. 612 (Tribunal)] would apply. There was no serious attempt by the departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X
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