Karnataka High Court
M/S Mangalore Refinery And ... vs The Commissioner Of Central Excise on 16 August, 2011
Bench: N.Kumar, Ravi Malimath
1N THE HIGH comm' OF KARNATAKA AT BA:"JGAI,Q_R g : I ~
DATEI) THIS THE: 16'?" DAY OF' AUGUST 29%;} Z %
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THE HONBLLEZ MR. Jusfmsf-3 A ' V'
THE HONBLE
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BETWEEN
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{BY ;%§.::,*s_.cr1A;v'«2.r;>:'«3:i KUMAEE & ASSOCIA'I'¥:3S3 ADVOCATEZS}
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'E'H_IS cm FELED Uz"S.35G OF Ti~£E<3 CE3N'I'RAL 1a;:>;é'iSi§j"..A.
ACT, 1944 ARESING 0157 OF ORDER DATED O?w-{7s§V8«2:"}f3V'??., " '
PASSED IN FENAL ORDER NO. .
NOE/O7/2005, PRAYING TO DECIDE THE SUf3S7i_}"L'\f'i'}wAL-
QUESTION OF LAW STATEEZI) '1*HERr:;I-;\I';" SET '.AS1m*~; 'f:'HS-.3.
E1'./EPUGNED APPELLATE; ORDER No.8'-90/200ff? QA'r_E§D'S7+.
890/2007 IN '3,z3{PI'E=AL
0842007 PASSED BY THE: C'E3STzi\'T', BA.Nr3A:,.0RE E:§.T-EINCH.
APPEAL NO.E/O7/2005[ANNEXUR.'f3;A) 1N._S'o r?AEa"AS_TH;:;'; "
SAME CONFIRMS 'rm<: IJENIAL 'of: czgmjxezxfgf/'1s.(101:v;a;1'
CREDIT AVAII.-ED ON BILLS or :«:N'i*Ry AS BE"-I7.\§tG '§8ARREE)
BY LIMETATEON. _
THIS CEA COMING <j'1*:71=<'<>'£:_'g<§I:»Mi'S.S:§jN_THIS DAY,
IVLKUMAR J.. §j)f3LI\;'ERE',I) maSQ1.,;',Qw1NS:«g;i _
The aSSeSSe€_ $3213 t}'1iS";aVppeal chailenging
the :j3Td€E" "pQSS€ind Tribunal holding that the
aSSSSSSS isVinelig_ib_ie«..ffii§»..a.>;Iai1 Cenvat credit as the Said
Cenvat (§1*=?:_V(i1ii'. Aa_j$a;i.I.-éd after a lapse of Six months of
thridvazte Sf iSSL3AbiE1 of ealtry falicawing' the deciSi0n Sf
. "title E;_a';:ge3fv.'B1e11Ci"2 {>31 2: rSfere:1:1c(: 20 it an $26 3.i1'3r<:Sa_id
A *- €§3;I;€§§{'§a'§I'% SE' 1é~1:v;h
1.
"Whether the "Bill of Entry"
ciacument. "iss-ufzd" for the applying the pmvis:()r1s of .
thus; covered by Rule Excise Ru}es'?"
The Largezr Bench by ii;§_§"~~..V0rdér__ Clezgtevgi answered the referrr3«.:1 qi.1{%Sffi@if}*iii".affi1'1'1;i€1ti'J'€§' and sent back the case "to tI'1é.T_'re;gufi'ar _Be:';Q'h'._fo'r disposal of appeal in '£(?§'tI§S:_'.Of:hiS§ Wfibunal the1'e3.fter proceedeié issue and held that the {Bfil to _' be 'treated as an 01'igi1'1a}.
d0Cufnei1t for p1_,fi'p4Q--S€ of Cenvat, Credit. in the inSt.21r1f;VVV'<:gts<3,.T *V:h_eV:_t1*<:,<;_1\.i'i. an the said BEE} sf E1"1t,r§; was tagliéiz z>1fter E3 ..:if1v0r1i}1s of the date sf isieue of the Bill of «EZnfr§='."*£zr:s:§« 'hen{€é?%,E3e €;1.SiS€§SS€f3 :33 §:1:e§;.§gi'bE€: ":0 avzzfi {he V' "{f_*§'éZ;€iiE;.T§ Eg§e§g;§;:iie:*z*a%€i by me ssaéd <>3:5.er, ':.§'1&*. E1--;'§S€SS~€3€3 has ' pf3éfé:%:":*£3'::if £i§}}}f:?£§§.
hzmdmg ever {i118 Bill of E:1t\% LiI1d{")II' R'L11e 46 of the Cusmms Act.
5. Per contra, the leaxrijeéi fqru 9 the Revenmz pointed out frgm Depa:"iirr1e1'at bearing N0.;Z7".§}*'V.}_O9/9£3§CX 1996 that in case in1'p.QrtedV'i'npn:its§by t4héAdt1_t.y"' of filing of Bil} of Entry the pe1'ibJc1} 0f'L6i:ni0n:tTi"1§u.s§hgf>uld be eff<:<:t:<:cI from the dams'Qf":'p21y:fi1e;1f..t)i'=dii5{y.afiéi'fiherefore nit is the payn1ent:i'Oi' ?whiC5fj;-- point; of limitation for 6 m<3'nf:f:$ of Ruige57¥G of the Rules.
6. 'i'her»:_fbré'«..."~{he point that amsea far 9111:"
<:§i§':s§?cie::'at.io12"'inviihiss appeai is:
?:?'%~€3._:€;TGS€ {zf Q r*:*:<:a;'::gj'{"z.C1i':;:re:' wfaa regeéves ;"%f:g~- 'i£_z1§9L§ is in éizejiziétrargg :.z:2r:£e2" COUEBF' of "Bali 53f' ;".E,':'z§:r'g;;" jmrzi, :..:;2§':a: dais' {he periaci of 352:: %. ,,,, ..
Ea/~ 9 months spew;/'ieci in Suhrule (5) Q/' V. is to be calcu£aied'?"
7. The klrgei' Bench of {Che
1..:§b'u.r__:;1I 'at.
Bangalore after considering the i'iv2i1_ T(i'(511th€'s1_ti<:a1j1::. under: "In the earlier V}11_aCi'gg:1"1er1ht the"
Trfiyunal under SeCt.i,--Q;f1s fl;i€"CLtt£{iOfflS Act and the procedure would have clinched by the Benches which heild " for home Ccmsumption was of any goods otiher than or trallshipmenf, ES required to p_1"¢seh'i=...tQ officer sf Cuséaoma 22. 8111 of Entry fr): home:V'__§j_Q':'1s1,1.mption or warehousiilg in the 'ptfe:a€t_:'é'¥ag<,c1zfiEc;:z'zI1. Such 21 SEE £2? E::t.r§; 31332' b6 praagemed .z1£1'_21:1y:'i;%.;f::«3A:'ahfE,er the €i€E§'v'€X"}f 0f ihfi émgmrt. m;2mi_f:3$€, or i:;.:§3<>r'a. 3"€:§;-:}:"%, 2:53 i'.?'1s3 {':EE.S€'. mag; be; 'i'E1£% juz'is{ii:7€:§<}:":aE Commissicmez" of Customs can in special permit '(he Bill of EI'n"t:'ry to be presented of the i.mpo1"*i:. manifest / imp0r'§.A»Vrep0rt;""»--I:ij~..re'é§peAei goeds shipped for in1portat'i0}:; in§e 'E«;i(iTia1éjzhe"--V'e:f€§é3Ve1 f' 21irc:ra.ft is expected to arrive \.-{%i!:_l1»11r_1'A. 30 i7réfi€'-.i:1ieVV date of such advance p§*_es~er1t21ii'c>r; <>fE:'3r1try'.- These are the relevant. pr()§}{i:~3i (3:1.$ of: 'See{iex1 }4}6 of the Customs Act. In ea£:§3e..A_of (: Z"i=£-§(iit, 0:f CVI) paid on imported. §npL1i'.s e1ea1;ed_'fer..]fo§I1e cteizeumptican, a Bill of Therefore, what; is to be reiatigm to B111 of Entry for liegne A .
the present. EDI Sgistenl was BEE} ef Eiairy Was; reegziireeii Eie be filed in €§%;:a€i;r':{.,:.§:%§.Ai:€:e1!:.e by 93:" en behalf of {he importer and the 'A pgfgxpek :1"; fiiaéei' £3? {i::s§.<}me 2%;a3s.:E{§;9 eaféer eeeeessznemi, ef me W duty on the goods covered by the cic)ttument.'_"n';é'.i%e. order k}{1.0\?R-'i1 as '{}L1t"0f"ChE1I'g€' erder'. In Sub'Seet$:{$i1_.{'i~e) V' of Section 47' of the Customs 1f5§C.J[..»_}3€I'I§f1i1L:12i1T'-fig': .cVl'eara11ee" "
of goods fer home cons3t1mpt.iC}:n €011.17-j be was satisfied that the goods €3I1't:ft31A"e't'.1 u:t1ti,e;+..':S;'eeti(S:r1. for heme consumption VV€i'G I'$i~O1Z prohibi1ie;d g()0és and the importer had pa,-2'51 t,het-'duty 'éiesesse'd"'the'te0n and any charges payab1e<~.i;gr3der respect. of the goods. Ultimately =,irri_pe_rt,e'r, 'V%e':,1'1d receive the t'rip1ic;ate sf _'Ef.nt.1'y alcmgwith the out.--0f-- ehargeuercier '31fiE1:L"~KtC}'hE=i5»«fetéliil the same. This copy of the Bill oi'~.EiI1t3fy'V-_ea';_riVe~;§V the dates of ftlhlgg, assessmem; pa35'me_iit: of dii'ty,._...e>:a1n1inat.i0:1 (S€CC}F1(f Cheek} and eutw A 'e.§~eha1'g;§e.'cfitfdezp Upen assessmemt. ef duty by the preper .é:éft_'f;€:e?f;:""t:}f;eVV.tr§pEétéate :;:€:e;3}* of Bi}: ef E:1t.:'}»' 215; };'%';'.qE,§iZ"€i'd :::'2.ée:_vSee.t'iz3:1 4'33} wee te be ret.uzf:2ed tie the asgsgeesee (importer) for payment of duty and anther' <:hgfge:V$'-{f-.é.1¢3.y and aecerdingly the assessee should-A4":*--n::a E:e"' paymenits. whereupon the prepexfmoffieer 'V-£z'ee--{i1£1"';3.;;1ss<§ 2 0L1'["Of"Ci"1a'I'g€ order under Sedien copy of Bill of Entry (assessed)A:£:i§)fit:.;iini1i§1.ef1*;e of duty would be reta.ineL*3__éa;1eg3ngvs}*if.f1 order by the importer 'ijhevvfgoeds for home eensumption." df' Entry was generated on EDI sye't'eI_;'1', v'3e:rLié.,i',3'ip1ieate print- (>ut,s:: of WQ'L11Ci upon assessment, and 1;)a,yin en{: « of to the importer vide pr0c:edfi--re_V La;i{i 'c§___e:i-x';:'3; ':_1"171cier the Bill of ES'r1t:1y (E1ee'cror1ic D,a2§§3§1z"z3.€:i0n)V.' "R.eegu1.;:v{ii0n.s, 1995 issued by the Board «:fii:"3.e§ Sé§V§::'§,i§}11 25'? GE 'She C2,2s3mms Aet. in {he previezzas 'V$1;jJé§i;Az2%:::f::i';..L£'{. {>131}? the 1:.';.":;p§3E::?:23.1:e C{}}}'}=' cf Bil': ef Eriuy 'i:'{V1é?§E; '$5;-"_Z1='E'-_"2":'§%'Q'éIV'E1:i'ii}{*,{3i at: me segame $t:agg§e, § £3
9. Bill of Entry defined under SeCt.ion__2[4) of the Customs Act means 3. Bill of Entry 1'ef:2rr<~:d_'itzaihffigficiflcr Section 46 of the Act. Section 46 presentatiara of 21 Bill of EI3.t.1'y:: tzo-1.;h(:' customs by the imp01"t:er' for goods imported by the St§r::tiQ'1: Act' governs further pf()€:C (;[uI'G.."§§L:.§:t;'1é1iEiQI1 't"0 the5r§c1ocument 'z1;D1:o clearance of consur1'1E3tion.
This §)I'OC€dE,1.?;(:", of Entry by the propter _QAffi{?:Ls:1f___t3:Q ir_np::)rt.e1' for the purpose of After such payment of duty f0]t1oxx;*€3<;1--t1:}_§} ;et:1;.i'13..:{iaf t.h€ Bfii 0f Entry, the document isftévtained V.b:§?.v:f£t'1€'tiSS€SS€€f and t:h€ same is the duty .V:g%sé;:)t}§}f%'§'{"§t§€?L£EI1{§f11;'t~S'§)€Cfif§€{1 Lifidfiffi' Cizmae 'C 0? Sub Rtfié :3 5%? V5'? or Ciausse at tiu: Sub RLEEG as i"l'}.€ <::a£-23 '-- m:»:§,i '$é;,."."5§'_'t*':T::s,>$:3 praa-*§si{3:1$ §12w:'% §_;<:»t_ {G be i::t.e:"p'§'€€;ed; $.11 21 I4 manner consistent with the provisions of Sectiqns £6 and 47 of the Customs Act. In 3 Constrmttion of €136 provisioxlss iihe word Sub Rule 5 of Rule 570 i1a1,<;--:~~w*;.0_4 'be:-j 1'T1(~3a1'1i1}g e«retu..rr1" used in Se<:t,{0;1 Act. 'l'I'1eref0:'e, in iihtair Iiijig: that" V the t3~1p.E1(:ate copy of 'Bill Clause .6' Of Sub Rule 8 of copy of Bill of Entry r11ez1tiQ'n:é6... in Emiid Sub Rule, was not auiilxofity. Either of be held to be a document issf?;,z'r:c!.LA of Customs to the importer, 5 0f Rule §?G pmVid.§1:1g fer a ::s::§§::':..mG:1i.hs fmm the déiiifi of isasméi af am? d€.) 1(",¥_.EH'='V1:€:','.]:"}L'+i'.:.V.Sgifiiiifiififii :in'Sz,1;E3 Huh: 3 for iize p*a,2_:'p<:>5s=;e <3?
" ";h.r;;:§Hiéé:':E: {sf i§1§}LE'{ 55313.25; <;.'.f€€.§§§ n':':2§:?;. '{::s: Ezeké :s;3§3i§§<'f:§;ft3Ee 13 to the credit: of CVD paid on imparted goods; cleegjed for home Ctynsumpfion, which payment is triplicate copy 011-311} of Entry or duplicate Entry the case may be.
the limitation provision of ':5 1fe1:J.ti0n to Clauses 'C' Rulé' V in a manner COflSiSiT€¥,}x'[ 5Vfiffi.Cfi§ig"p:*"{;ViSiOr1S Of SE3CtiO1'1 4'? of the ';:_cC0rdiz1gly they held that bjf ;EI1try specified in Clatzgse r_)f_'Rule 57G and a duplicate of Bill 0 fvE1'-xtry' 'K' of the said rule or d0<:unzei*:--is ivss11<:dA'i(:)"$,.}i'£: importer of input by the proper 0ff§§:e:"~ of Ciisfiigms. is in terms of Srsctien 47' of the C'f:;st%)5':'::s"' act, amcé the reievant E-}E,'1b{}i'C§3§'i"i£i3§.€3 ifigisslatierz :.,1::i'é;é'r._iii":»<5- 'Ac:'if'. E pZescrip{ic. __ 4* ' .. £2':
16
11" It is the C()I"1"€Cf'LZE1€'.SS of this finding with deals with the procedure to be obsen-*ec1 "--té3' manu.fa.cturc3r reads as under:
RULE 57 G: procedure 1'0.-b£>:
which We are co:r1<:erned in this appeal. Rule 57G..yvhich €3,f1eé I71ClIIL§]"C1CZ'I,U"€.'~ {I } Evéry " T '~f'}'la'fLI,§]§:I{_€I'L£f;&'§;"'- _ :1 T A intending to take cr'(ICi-i.i_ Q1' Vit'I3,.e"_VQr1,:3 inputs under Hrule rulé~._5 7 E3) éjfaall file (1 declamjfion,<'"'z;z,>i{fz '"*£.i.1e /X;<:;<;i;s*i{ar1{ Commissioner having _' . C£_3fi--ii€v:1i _juf*iSdi£7€i0}'i*1:,3GU65 his j'c:i<;*--:;'érg, irldicaiing the final produclfs m1:z_ri::_,jk1Cta_Lre;'~:i' _lI:1c:tory and the inputs . _fTZE'(3?"iC'3F3_(Vi 'i:oFbe '-uséd in the said»/'ma! producis ::z_:jid.__ s:.:C?1"v--s~:A§1'er 2',ry'70r'rna£i0:1 as Em: said 2 ..As,sisM;b.z1ET CGI'7?I?'Ii.'3'SiOI"iE3?' 1710;; reqazsire, Clfid %:;i§z_a:_€:':'"':dc5E:ed adage;;::i.edge9me:'zE sf {fie said §£3{:E§c§m§.i0z<2.
£7 (2) A nzazrzz,gfkzc:rL:re*r win) /my filed ',3 (lecflamfion £H1£i'€i' .mI)-ml€(1) mrzy, (zj'%e{2*.._ [*-.. (2i7z(zirzi:'zg rhea a.c'km_)wleaclgcezncmI (¥:»f'('}1}'%;_:{#.iS;C-£.'zir.l@"'- --'-- V zczkg c:'re(!iI (Lfffhé (Jury on the in;)u_z;s":¢e?'(;~geii:*~éz.i«--A
1.) him.
(.3) N0 {:>re°(IiI Lznzier .4_§;;,1i)--f'z,;v_Zé(2), _ taken by the m(2z'zz,{fkzc'fmféI' _:..u1/é--.s1s'«_Vii1é ii-igmr,s* are ;'ec:*c2ivec1 ii_2 "I'I?e fcI€f_f()'i'};? .z,z"2/-1.61537" 2'/Ia? Excwer of (2:13; off #26 fol [0 z_' mg 'c'Z.r")crz:--m7:'cx%iz: .1mz.1-nely.' -- {1} _ zrzzfi'iii'13¢icxé'é.'3f;§zgc%ci by cit mcmu']'£:'zCf:,4zref' Qf iz%1}3L.;._Vf.s'».z..;fé'cf¢;*.§;*:.{!.;?%"'52 A or 100 E qf the said V has 15,5" ; "
'i_33}'«..% ":'g;i: i;2.vs>i(:{5 z's5:z.s,ez:I I3); {I26 z:«z(z;2s.{f2:z.cfz-ire.2"
* {;;f.'j~-..i?:;;é:§:§ 'f}*0m E255 cfgégyai :12?' fmm rim "§:};'i%'i1%'z§L3'(i%* {Eff §'i3g:~f {fay}:5;§gs*2z"s3.e;'zZ azgwzz Off 212:?
"';§'g<5E:2' §?§{2§'Z5§f§e':f'{'i§3??' 52:" j}"{:s:';'z €';§i"£jG (2z}"z:?r "£8 [)i'e1T1i5"€_s'f}"0m w/zere the goods' are said by or on be}2.a.l_f' of rhe mid 172c.z;2.z,;f'czc"2'Lm:*}=.._4 pr()vi(ie(1 the depot 0:" the premiSes,_.§i..§"2'!ég=~., --I~ ' arise rnc1}= be, is regi.s"terc»*d under mfiz':%»-- (C) Iriplicafe c;'0p},-'- ofa §,ff.€j"f1"4z*f:T.;='.:,'4., 4' (5!) a (,'€?'I'ffi€(Jf£' i5tf;':,:.L_{cZ A;);3;"$'zz;f}¢é';f&.
C am() ms; payed' in rcfig 1" '.;re,' ((3) an in v0~ j. i ~- .,s'fecr()1év(I Stclge deaier ;--;:.:>:£):E'il5j-:b _'.4/'egist'ere(l g::';*"!_é I":-£36 'V f}__ . A}./)z'z<"z_-i;1"vr2£'a:i¢"'-i§f,m<%::1 by at 5eC0rz.d stage ' .5féc2.Ié5~9fQ1f""«e:5te.?'f.s"czZf:le gomis regi3'z'erecf 'V 552.52:-?'%" mfg Z 74 czmf cluz}-' {3£ifi2€i'ZZ"i{?£if€£l' {i%éf§F{L?j}€€}' Q[fl<:'€r, .3' " .::;$.%2. §;2.v:2ia:'e% §._S'S£i(?€Z 3:1? 5: afzecsfgs' 0:42 5);"
' ?}{f;'éi2:*6 22%? 3 E 'W 55;; {;§f"A:..ggs.g.§z; E 996',' (/7) ('1') ' L' ;s;ee:§e:'*::f'€z1' I9 an if'2i»'()f{?€' ismecl Z7}; an imp(,>r1."e.__I_f rc2gi.s'fereci Lmder rule 174 (md (ZL£f}2€I'1Ii(;'(,Z1'€(2' by the proper Q}fj'ii_e:293r9,V 'j' ' an f?2'1«'0ic;?€ issuecl by mz ir:+1p()}*i.:e*E-'_;f}9*(7»rn'* _ his depot or from fhe ;)r'g9r:zi':;cé.s'.. Of Z';'€e..__ :1"
c'(m.s'igm?2.en.I cz.ge?z;I Qf' ii1_.é".s:az}:IT.im;:(v2;frz?rf§ pr()w'c'l6(l the n;S:<1,i(¢'._ (i«3 p'0Zf ' br the [)f'(?I'??2'T=S'(%;§;..4_."(IS ."Af/2.5' c;*;cV::;s'é'~-..%1'}?(z}> be, is ?'~€'!.;3l13'l'€?i'c%cZV_ "m1_(1é.if' 16., E" cmd (214 [y :1L;?=£z§>I?.iit:;:;ted ~~E5y'*r/§.éCprcifzker (')fi}'c:e1',' 1 -.i5_f.s'm?.(Z by a ]"z'r51,' stage or ' . of imperial gocmis' ;" r:gi;5"fce2;é¢! Lmder mica 1,74 and ciluiy §2.:.;zZzé}§if§rcz{e:f E23; 2'!-2.5 ;}'2*"{}[)(?i' Qf/'Ecer, "<gf; ;:g)[fcg2I:? i:'()_pjfi 53]" 5: Zfiff {Jf {%?E§.'?'}? 53:2 .5Zez;%z;':2;?é:.* [}'sm:'g sé:f€;"{.*iz¢£s'2g;rge S}';'§?éff'?? §r35fg:Z[eg§ if"? §::'zj;f (1)
(m) Sec":-.'f(2I'2;. 5 U"
M w!5é£?V~----g2;.s;-5I71:z.s:«:%z27 i'l':€ gaocié; di%'ec'zZy 20 Cz45r01n.s 02" C ernrwzl Cr;az'm72.i5simze rczre ca (:*e;'I;'fEc:rc2re .€_I$2S'££€d 'H 2:5 Sagyeriz-zz(2n(]e2r1I czf C 5312 f:3f::.£ '['EX::fS€_f('; r --~ . . '-1 ' the p mper (3[f%'&rc"«-3*_V in me V'CI:1.s*z:<j'i?:i2A-gs' '.c_.r.1f¢(z3 Lmder rule 5 7E,'cz}'z«d' _ an in120i(3.6"i,s'.s'z.;_e(ii--I1};'Q3-;#"22,z,t2_.tgfi:zc'2*zz2/"er of fix-zgrzl ;2z'()(lz.;:t>£$ ' _£:»tf7:;C2'é'?"~ ',$'£2'32-.~*?L£[e(.3') Cgf ;;*z,{':$§? 717"-c;r*€ 5::ib--}*z:iZ:%('}w}. rule 5 7.5'. tlzéfl gymyaose of this 'ffE.;;s*vz' 5;-2'_czg~*:? {iealer means' cs demer ' ' :f§%*»r.;>;:vze j_ E329 2;'z.:s.zzz.{f%z{:i§'z;re3" 5.5;-25.2%?' fizz-:% saver c§fcg%2. 2?;/z'%;(}s'g:"e s.':;5-zgezf £.£i'Z{f€??" mfg 52$ 0;' mfg»? E §f}€}.E 0%" f%°:}§'3'z §T;'2e zféegwz gig" E526 ;=;-zzégi » 3'!-'z€ _ :
2%,,/"
(5)
is-zczr2zg]'&z(:Iurer or fi'(m-2 £Zi'2.}-' (}Ii'£€}' ;:2r€m:.'.,s'ex flmm where the gc)c,>c2',s* are said lay or on be/1c1(f' of the mCii'?i,£_]%2{i'fl-ii'€i", Z4-M6216? C()v€r _. ' ..kfzi}?.: 2- ' is/zvmce 21513';-tea.' zmder rule 57G;.. {)f;=i V V' an inlzpzmer or 'f}*(§3z:>'z 1.22;' fj.cZt{;7%)f =.«'§l'.?:'Zf f imporzz-?r or f}'1i'ii??, I'h,<i:% ._,z§'i--'r_J.;72i.<»fe£ flzé; c'()z1.s'igr2z-nwzf a;g2%.:a;: 1* of z'-; h]3(';=;rter*_, Lender c;r()':i,»5er ()Kf'fz;z"i;:fl1gaf::'e i.s*.s'z.:c€d ikzzcicer"
mle 57G. 'V I ' k "§ST.€'{.i'_»(':)'}'3(1f ';s?f£ig__e--(!e::1leI""' mecrms cz denier ' . wim [:'.:'}£."',{,;;F!"z".--.",f{.'L'S"é..S' I/2.6 g(.)0c!.s* from cz_fEi1s*I vEr...% ;§};3 '[:c'7Z5:5;..§'g%{) eff ..'sss§3~s-':4§§:%{'3,3 €.{fi"é'E" Size _ ' sfjgigé ciéczléz'.
?--.'{'4 .._Z\i1i> &}*é}:iiI Sfzczii Z36 zczice?-2 53$; 3124:? * ..Jifz3;2,';Vé%:4;f;;%g.;rfz,,srer in ra»':s*;)ec,*§ {Jf §iz1:()£{,%g.s' :'*<{"é;*;*ezZ 3:::é"* " f§~;?{}Z€ff?'EE3€?'§ E 996. :
//'/ (5) Credit shall also not. be taken by the manujdeturer after six months of the date Qf' issue Q/'any document' specified in sub--rule(3}j and where the irzternlediaie ITLCl?1L§fC£CiL£?'€d by the Laser of inputs j"
under rule 57} are reeeiz:ed*"'~v--.I5:y..
n1a1'2.z.gf(icturer, after nine 171omAi 1s;V "
12. It is not in di_Sp_;zt:e that .inT'b.exe_:'ei.s§tig the powers C()1flf€i1'1'€d by Se(:ti()_:(1h4_»7_ <3fvf,he'CAex1§;rg:5f Act 1944 and the Cemral ..I Q84, the Central (}o\r@:§i'11fiieni:v_,111a§:ie i'}§e.'_.Ce;1é'e:'a1 excise Rules 2001 which shouItivV}:ave'e§3i;ie. ii*I€T._{§ "ef1'eet from 1~'»*'« day 0fJu1y' 2001 by:w=:h_e «No.9/2001~C.E. (N,T,} dated 1%?' .VP§'I'a..1"<f}*e" fZ(5{}_}, Thewsaid ;1<3tif%{ra'{.z'on was res.is::ed emd the {.f:;?:i1;-'.;§;i-A_{}s§i:ei"nme121: maiie 21 Cemtraxi Exctéeeé (2) Ruies 2&0E..__"b3:iA«:""£eeui:'1g :::>i:i§'i<:a.E.i(>n 3\I0.3@/206}; M CE {E'~€'i') ..:'i§c_1€,eCi" 2'§RGtE§.2{%€i}:. Q1": the sgeme zigzag" in exezzfisse ef the gfioifisere ee:>:1fea"red by S€{i§;i{§'§1 3? 5}? {he ilemirai Exeiee 23 Act 1.944, the Central Gevernment made the_.CeI1vat credit Rules of 2001, The period of 1i1I1i'{.a¥;:(f;;{j<«h:f._§;ix months which is contained in Sub Rule (5}4':ef' was deieted. In other words tgcriaim ' j n Eimitation is new pI.'€SC1'ibt3(i. ' 2 V V
13. It is in the . (31? V policy and iI1t€I11Ti{).1'1..V of have to interpret the afor'eVs_3;id'w..u5'pr0y*'ieS.ivi:;n'S«. dealing with 1imii:,:ctier1[f.'i:1st5fa1'% a"e_B.i11 <iI""Eniry is eoxleeraed. Seet:i<)1'1 46 ei' "1962 for Sheri. hereinafter referre.:i_ to as V*'*Z?&Ci:"'qireevicles for €f11l1'y of geods on im:pa:"i4aE.;ie.1}.eV'A 'em See1:ie:1 {2} ef Secfiicjiz 46 speeifieaily V' A pirei»-'Ed:%S"€,1§at: of Emiry $172211} ineiude 33} {he goeds 'win of Eadingf er ézefher' i'"€C€'§§3EZ giver: by {:3::<'r;_ie:g*:'§::'0 the {TOE}S§g'§'£Of. Slib Ruie {3} gymxrides that'
3. Bi}? 35;? £§'2.'i',:'}r Lmziei' Sufi eeeimn {E} 53123.}; $39: p:°ee;em.eé 3% ; xfll... »-
at any time E}«fE4€I' delivery 933" the import .mar1ifest or import report as the Case may Seetion. E7' of __the Act. deals with assessment of duty. It made as (1) After an import entered i"
any imported goods u.nde>rH seeieicvn"4--é'_V.0é*'*:f1I'3._ exporter has entered arI_1; exg»::):;f2?":?: A' section 50 the irnpojrted Qoolcis. or V' goods, as the ihereqf as may be :f_1_eee$_s'a{y r.I'z::zy,,_AALzV;i;ff1ouI:
undue d(:'lC1y_.Vbé:*€XC'iIT1{{1€éd~--._Q1I£d~L€Si'€d by the proper Qflicer.
, A {he 21f0re--sa§d pmxsisiens makes i1:_~::'1ea;~ t.hat after the importer 11215; entered for i:mp01*ted V' «.geedTS.L:ALng1{£e:1' Seeiion 48 then wi1:heLat. undue delay the ._eL£:;:§eSs'e§1:,g§ eiiiiiiaoriiy has; to exarzzine arid. teei. the Same. A$iT'%.'er*-. S:.:':&§": exa1mim;zt.i{}§1 zm<i §;€1S€i§'I§§; the dut.jg if any " §é:":V3;2:'éie em -S33;§{'f§'§ ;g._§0ede zzeeesseeeé. "§'he%:reg1f€.er me ;:/.,e which reads. as under:
stage for c1ee.'ra1nee cf goods for home (:{msump€,i0n is arrived at, which is provided in Section 47 of Act 7.1) Where {he praper 'V'.
SCLfi§fi.€d that any goods enI;ered";,'~"c>fVV ht)n1e_ consumption are not prohibitedgot1d$i_(,tz1d--Ihe A f importer has paid the ir%;g3c§i"t'.dLztg.;V,'*v_e' 51:192.? A' assessed thereon ~-(my C31g1rg.es'-.1 under this Act'. in r'e$;§'ez:_t' vqf I:he'~s(;;mef {he proper Qflicer may I-%1aZ«:eL"a.{z._o"i*dez* pernuffirlg clearance of the g0od5§ffc)r9 l1.enie'.jeQi:é.sumption. 1'l'.TlpOf'I€1'f1(11'f.S to pay the 'iri'zp_oI'!e_ Lzneler sub section {1} within ' ' §eve:'z"»£i§V1§;'S_/}':>zn the date an which the bili of i.'erazi'g:g is f(§i::ii?;fI€d {O Ezimfzar payment Qfduty.
" _ .,':';e%:;cVzEE. pay imeresi at' sue}: rate? moi beiow Qig'-".'i:e:i}= per eem':'.} and F102" exceeding; £'I7;:'rE;;; per v'..{7e:'t£f per as1r'"zum§ as ésjbr the mime bein;g'f"E.>:ed {he ffieard, an :_~:uef'2 du:z"';; {£55 she daze ef p«:§;;me:':E £3?" Efze Saézi ei:,::.E§,:: Prawaied, 3525;: 26
where the bill Qf"en.tr_y is reI.1,Lmedji:>r pagmeyzt of dung before the Commencement Customs (Amendment) Act, 1991 (55 of'! and the importer has not paid before such cor71n1e:'1c'err1er?zt~ {he Q/'such bill Qf entry to litre, slficzll :be' :3 ' be the date Qf such .4eon"zlr'2evr'iCerrzelrzl'l-zthe 3 purpose of this sect'i€}n;'*,l. 3/ that if the vBQard fi«ti*aa'iF:il is necessary in } so to do, it?
may, by orc:leAr...._,fir:9.:f*V.relzsene;1 recorded, waive' Llfhole""bj"" any interest pa;;di§i_e _L;i':derfl*:i§ section. "11 IE, " If llt11é'.i1z}a§<>rtle1* ens the im orii ciutv as _ . % p y :3 -
aisfigseseeci, ';i":--e__p1iGper officer 111.231}? rnake an Qrdez' V"per1:r1VittiIa.gc1earan<:e of the goods for home " A{?{?1"iS{1'§fiT~;l;}'§,ifl§I}. It <):1i'j§,-«' t:he1"e'af'{.er Ehe imperter can brifigleihe ggeads imp«:>:*i:eci :9 his factéer}? §13'1é€i' the {ji€}V€§"
{>§--., ihe eeziei Bill af E:*:.é:2:";; 0:" E3;§1}r' eriEr1e::° z:%=:;{:mé:":en:: 27
mentioned in sub Se:::t.i0r1 (3) of Rule 517G. Exeeptin the case of the Bill of Entry as provided in in spite of all other documents, six monthe to be calculated from the datevr;f"ie:s3t1.e3.'_'ef; b j -- There is no diffiemty in in respect of those ci<:}c:t.1t1"V1»et§::i":'~?~._.> only in the case of Bi} _ 0f ti0et"1Arr:enVt'V§ which is prepared by the same with the auth<)ri_ty eQeee--rne<ij1 goods which is irr1pQrteci_.Xit}'V_--is_atit)t '8, '("i§_)()3.;1I_Ii'}.€',F1i issued by the importer but is°a__doeL1me:1tf from the importer himself. 'I'h;e"£iate o§_is'st1e'of such document resulted in the ' « .g1'f{;re%5%:it1'é;:Qntmve;:Sy.
},6._ 'f'hereft;re the <:;uest.ien is, whether it is the date Q21; which the im§3etter presentzed the Bil} of Entirjv H V€_.e'4"'the 2:tzt.?:er§t£ee has; tie be t'eaE;e:1 i3;",:'::e eet:s;§;fie:'2ttée'r: er % is it the date on which the authariiifis after exzimijfamiion and assessment ievied custems duty, rett_1._med ~ of Eintry to the importer is £1113 ..da "€,<-3 t.:i3.H;f}Vé'~iVI'1.é:Q' V Consideration or the date on the duty as per the demai:g1 ;"~.Qr is 'ifV the 1day'. O'x1~x&%hi(%h"V V the authority $peCifie_s t11at .i;h§§"di,1ty is; an order which is knowh' "'5§>ii1imof"%él1a1*ge order" urzder Section 4'7'(1)_ ()f__ Eh§: H}"{<%1?t':: 153 be taken into C0ns§de1*a§tiOf1;.,_V}nf§1c§t,f_ :1fxfQr"fu'f1'ai_;e}y before the larger bench, thé§":fe:_x-?:j11n?a_,;e not point, caut how they have 'underétd0d as it dear from a detailed circ'u1arV"'§s§;u€d' byA._ii1§:'n beamng N0.2'?5/' 30$,/96wCX, 2891E;E"E¥§§____p:"educ€d as AfiE'1€XLEf€ m 'C' to the :5s;t'2i't,s>;n§;:€1:€;M' Qbjectiaiifi fled beibrza fizig C{)ur'{:. The :5::ié$r'r:3,j;f:'éA._p':;»i"'é:.i_<5é:.:: of fiizsz z:::'.:'{tuEa1" r€:21.ds~; as umier:
'--'[i'j_f'§é»'fze§§1er ihfi' 5 }'E'"i(};?'"E§§E.S period far ifze .1tz:.;r;éé:::e zgf £.(zZca':'z,g r_:r"ed:'.E' sfsaii E359 at-m:'zp::§s2(£ 29 from the date of payment of duty in case of imported inputs or the date Qffz'.lihg bill of entry.
Clarification The _period of 6 months _s3h.ouid CO mpuied from the date of _1oay;'1 i1'«Qf'1:iuiy,. u « h" 'V Point~5 What should daié 'for ;;5;vz;}:;::mg 6 I71OT1f,hS period io a_oo:z'.E.:_ i'-he Uhider Rule 57G :1:i1e*r'é_{"'~., VA A 2
(i) Transport'er'slcjjogjyofi':fi1é¢r;oo.ice is lost"
* T. oifilid 'cfediloh V:14oerrnitt.e:':£ qfter a _ 'h
(ii) hfifedii U;r1d.<=3r Rube 5'/"E of duty hhpxtziidorz agate cgfter 6 m,o2*'zi?'1s of of;.»:E';; A. paid hohfighivricaiégg.
"€5iI'a,§f*t_'fiV1cé.tion:
. {:3 ;{:z'} 6:? ;?'zon.€h.s §9E?¥"i0€§ §?:i{"é§; ho: appig *~ V ifs': .;9:,:{:h CQSQS as ;*{3s:2"ic€€o;'z of 5 r7:s:>h{h;'~3 is €i§}§§§i{,?{T£§3§€' 9:25;; 5.2:} éfzosgao {.'{iS€;?S 2.;:%':€§'€ €'§'2.e assessee hinisegj' fakes/az;a.ils the cred.i§.. IE"
z.u0u.Z.d be lmowever appropricue {'0 mice crredii in such cases bL}iU"i.i?1 6 rnonihs Of the date permission given. by the "
Conlrmissioner on the slrerzgth Q1' 3 copy {where duplicate copg_,1..is»__l.0st)_--.' H credit' can be taken u:it'I'1£,{1 5 AA daze Qffssue <)_f'cer"t'g'fi?5:{,I(e Lizadér Rul¢V--5.7 E; by . the Range Supe:'ir1ter2d<gi'1f.,»"
17. Theref0re."4'1T}i§:'§1'é%p§§i;%t.'fi§;éifit.V:imderst.ood these pro'v§s3€)i1°s'-?:if§fs0f2iféf' "a_s"t1.i'C Bi1_i'"€)V£" EI1t1*y is COfZ1C€£"T1€d six mémifhs "frat?~.i:h<:_ (ia'é.g: of paymem; sf duty. This <:i1'Cu1ar V:£'s:«._4':3i3;1dir:§§ "'._>§'1u:'--1'1e r<:ve11ue:=.. In the Eight: of the £:i1i{?:i§:1?;e1:'~'tE';::: fi_'z':.d;ng_:"€:<:<3rcie{% by {he }21,rg£3::' §:»ench. thai . féaé? six; .:;=3{1:;:>.:j.*{:3:1-.65.; pézgriod has to ht: <:<)mputé;'.€E fmm {fizz dzrsms :%';f" __E3£ZE ' }'f;:1i'.'z";/Y m%,'ur1":<:*:d €11} €115.-é impzéiier 22§ie':"
{*:a>::"a:f:<::::é'<%€ms:%:':*{. ('sf Eihéf <:';3;*§i11 {>23 <:ré:{§;i'§: *L;§";e:i:'=:r Sui} Kiflé? 35 &1E%§$"3SSE"§KfE'1'i': 93 §'.he £12234 pe1§2221i)E€ em iha §'i;>:§:é;-7 fag"
E of Rule 5'}/"G £3 egxgfacie iI1{EOF£'E§Ci. Hawevézr, ureWnéay--p:)i1ai out that in View of the aforesaid statutoijfi pt€>ViSiO'11$ V' coupled with the fact. that: t.k1€WS21ici iimitatmn is no men: in the st21i.:;itQfyV'book;§_"_~;;i'1y 'rric«;*é',. Wouid be pmper to hold m.o'n.i_,hs to V be Camputied from ovefif {Sf ths 0u.t.~ of--charge order ':0 the 717fic--'.:';"€:_.éi;~s0n being that even after payhihént hf ciufy by."t:he...i.:iiporter, uniess an order uncigr Qjoflhéi Act: is passed and that copygof' thTé5§;}r(§63:fV i:: f1;;r1de_*d over to the importer he <:arm0i;~.get tji:e_'gfiofiss-.__fo3f~~'i'1on"1e (:<311sumpti03::. If a.fi';.er such. an Gzidez' Vi:s~__hé;_{ide£:*1 {wear to him he {E€'.>HE1'}I1i§,S {ielay ingjgittiiggz €,he"g_;0Q@s, he Cannot take advam.age cf such éieihéggr. i3i?..,E"_f: ":;~:1{te {ha ;3a:;*memi'. is m.aCE€: anci the 2sui:.hm"2'::}; ' §«-2:zs;s;;%;Sv';:<1,;"i §é'§.<i§r "=NE'}.'i{3h is; itaiééstd as OLE? 0%' chargr: ardcr Z:1A?"£.j'§ ham§§»{'..«<3§2:%3:* 9; {tapy sf Eht:-: ssséié ardez', €313: ii:I:.'i§:2€£i§{;n for claiming Credit starts fmm that date. '1'h2;1f, a propea" inte'rpret.ation to these proxrisi0ns__f¢§;*hi<fh--. ~ be in conformiiy with justice and V. ' being harmonious with t.h€. »AA»ve1§__b:'€S'2's,i<3:' Therefore, though we accept tf1'»f:__ "{.h<g "
Bench that the Bill of {cfhifQctmjgie;1€.':. is'svuéd as"
p1'OV§Cif:d under R1116 57G,..":iVI1S{;f&}IT as ~.f::_}:1.€ fiiate from which the iim.1't;at.ior1 _{§0rf;;i€L1't¢d f0r f.f1 e: purpoge of Sub Rule 5 of Rule'. is wouid be the date "Section 479(1) of the Act that is handed over to the iI1'1po;'€:§3.*r.' H ..g_3}ca:oféi'£igiy$ $136 appeai is digpased of in order 21n$we:*'§.:1§,>; the :%abS%an'€3Eai £fi2€$§i_§:}r; n:fi" E21ax:' raised in faveur (sf iém 21S5§€SS{"':§: and " .&%§«2'd:'3$*: ?.l:";:?:' r£3;s£<a:%I::;z4§é;7. E2': mzms {if '::§":§% afiértésgiéé .__ g .3 .7?
declamtiozl cf law the appeai is }}.E}.1'f.I_'.{__ Eflidiifiiii However. as the facts in the case do not d'is;v{t1Qse "when ' the Order under St-rctiorx 4'/'( over to i;h.e importer, we wo§.:}<;1 rema3:--z_d €h.ebVI'_:1é§it€;€r t':3'thé'v. original authority to Veri:f}I fi1:;2 '2r.f01'esa._£d"d:£te:é 2md find out whether the (:1z~3..i"m..'_f(>'If«"Vcréd-it. n1::1dé Vwithizn six months from the date of suiih :orri.e1 *--b'e_1'_ng handed over to the imporfsef {her} p'é1S§';'§T1 9;pp1§(}p1'i.a{€' order. This a_'g§é;i*i11g__vexé1mp1e of how precious j11dic":i'a;] t_i:1.1<§ 'i5"*x:gé:st;é%dj«'i:r.ec;u:se cf the lethargy of the departmenfitg to the notice of the 'I"'ribunal anti £a4rg§3§"-..fB_§§_:}(:h of iihc 'I'ribunai the notification ~ 'E:,V§'1{~"1._fiZV <.x:a:;is;S'1,2{5d as far as back in tha yerar 1998. It is i;:%rar":eA i}";{é_L:; A 1=app'mpria€'.e: ssiepg em: iaiien aim? 21 raspaiésibilitgf be fixerd 011 the: {'.(}§"1::"i€:"E1"1'3€{i {}ffi<:§aEs:» amii thg {>§f§'?s=:..i21L%; '$3.3; Eésrap £2': zzzmaté E.E:<:% <_':§r<::.:§a:' is5::;z.§€;s:E by iiimi 34 Board and page orders in terms ef the eirculaf piay hide and seek game with the jL1Ci§C:'?i:&fi'} which is evident in this cas,se"."' '..rei1eet'$_ 011:7 func:tio'r1ir1g of the Department 'w_hie_h weharev :%Li1'*e"--~1h.he.VV higher authorities \vo'L;ld"'*-ifiake v.n'O.T;€>"»(\3_f 3 takeh appropriate steps t';{:i"*ssxtrear:iiii1ej' fur1eti{>rIing of the department, in particti-131' the matters which are b:ef'03_'€-~ 'Eh€'véii£1:§1'1Q1f_if.i€S under the Act.
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