Customs, Excise and Gold Tribunal - Mumbai
I-Flex Solutions Ltd. vs The Commissioner Of Customs on 4 January, 2005
Equivalent citations: 2005(184)ELT259(TRI-MUMBAI)
ORDER S.S. Sekhon, Member (T)
1. After hearing both sides and considering that the core issue to be decided in this case is that the recovery of duty and levy of interest thereon, on computers and peripherals imported and kept in the Customs Bonded Warehouse under Section 58, which was also a manufacturing bond warehouse under Section 65. The goods were imported duty free under Notification No. 140/91-Cus dated 22/10/91. The initial period, the goods were kept in bonded warehouse without payment of duty was for five years. The appellants did not request for extension of the bond period as submitted by them on a bonafide belief that the bonded licence was valid till 23/05/2006. They however, made a consolidated application to the Deputy Commissioner of Customs on 09/04/2003 seeking extension of warehousing period in respect of eighty one different bonds executed by them. This request was recommended. However, the Preventive Officers on 27/08/2003, on a visit to the premises were of the opinion that since the goods were not in working condition and were not in use but were only kept in store and after recording statements they worked out duty liability in respect of these goods, which were covered by the bond period expired calculated a duty demand of Rs. 29,94,413/- which was thereafter paid by the appellants. The request for rejection of the extension period, if any, was not communicated. However, a notice was issued by the Commissioner of Customs seeking;
(i) Why the aforesaid bonded goods (where the bond had expired) which had out lived the bonding period should not be confiscated under Section 111 (o) of the Customs Act, 1962.
(ii) The amount of Rs. 29,94,413/- being the duty chargeable on such goods should not be demanded under Section 72 (1) (b) of the Customs Act, 1962 along with interest as applicable under the provisions of Section 61 (2) (i) of the Customs Act, 1962, in as much as the goods have remained in the warehouse beyond the permitted period.
2. After hearing the appellants, the Commissioner vide their order now impugned before us, confirmed the duty demand of Rs. 29,94,413/- under Section 72 (1) (b) of the Customs Act, 1962 and appropriated the amount deposited by the cheque as mentioned herein above and also demanded interest of Rs. 8,56,451/- under Section 61 (2) (i) of the Customs Act, 1962. No orders on confiscation and/or penalty were passed. Hence, this appeal.
3. The appellants have submitted that the depreciation as eligible to them for determining the value for the purposes of duty as prescribed vide Circular No. 29/03-Cus dated 03/04/2003 @ 20% per annum and that would be reaching an amount of 100%, the present duty demand worked out by granting a different depreciation which is not in conformity with the Board's instruction is required to be re-determined and re-worked.
4. It was also found that vide Notification No. 67/95-Cus dated 01/11/95, the goods imported by 100% EOU in the software technology parks (STP) under Notification No. 138/91-Cus dated 22/10/91 and Notification No. 140/91-Cus dated 22/10/91 would not be liable for any interest accrued on the Customs duty payable on goods warehoused under the Customs Act. Benefit under this Notification has also not been considered in this case.
5. In view of the finding herein above, we would therefore set aside the duty demand and the interest demand and remit the matter back to the adjudicating authority to re-determine the duty and interest, if any, as would be applicable if the provisions of the depreciation circular and the interest notification are applied to the facts of this case.
6. In view of the fact that, we remitting the matter back for re-adjudication. We leave all other issues raised by the appellants without giving our finding thereon to enable the same to be raised before the denovo adjudicating authority.
7. Appeal allowed as remand in above terms.
(Pronounced in Court)