Customs, Excise and Gold Tribunal - Calcutta
M/S. Indian Charge Chrome Ltd. vs Cce & C, Bbsr-I on 23 April, 2001
Equivalent citations: 2001(132)ELT300(TRI-KOLKATA)
ORDER
Shri Lajja Ram
1. In this appeal filed by M/s. India Charge Chrome Ltd., the matter relates to the duty liability on the goods imported rubber membrane two numbers which were subsequently found to be defective. The goods have been imported duty free for use in the 100% export oriented undertakings. When the goods were found defective the importer surrendered the same to the customs and deposited the gods back in the customs bonded warehouse. As the goods were not put to use for which they were imported, the Commissioner of Customs (Appeals) confirmed the view taken by the Asstt. Commissioner and confirmed the duty demand of Rs. 26,738/- and penalty Rs. 2,000/-.
2. Shri R. Santhanam, DGM appearing for the appellant company refers to the Ministry's circular dt. 10.9.99 in which it is provided that when the goods imported are destroyed with the permission of the Asstt. Commissioner then no duty will be payable in respect of the duty free imported goods for use in the 100% export oriented undertakings.
3. Shri A.K. Chattopadhyay, ld. DR appearing for the respondent submits that the goods have not been destroyed and the Commissioner has demanded duty as the procedure has not been followed.
4. After hearing both the sides we consider that once the goods have been deposited back in the customs bonded warehouse and the importer had relinquished the title of the goods they could be disposed of as deemed fit by the customs in terms of the circular no. 60/99 dt. 10.9.99 from file no. 305/111/99 F TT.
5. 2(B) (ii) of the said circular is extracted below:-
"In case the supplier of such defective damaged or otherwise unfit for use goods does not insist on re-export of such goods, the same may not be re-exported subject to the condition that such goods shall be either destroyed with the permission of Asstt. Commissioner of Customs/Central Excise in charge of the goods of (or) cleared into DTA on payment of full customs duty".
6. As the appellants have chosen to surrender the goods to the customs and they relinquished their title we consider that the goods could be destroyed or otherwise disposed of by customs as deemed fit and in such circumstances the appellants may not be fastened with the duty liability. There will be no ground for imposing penalty also.
7. With these observation the appeal is allowed. Ordered accordingly.
Dictated in the court.