Priyanka Overseas Pvt. Ltd. And Anr vs Union Of India And Ors on 15 November, 1990
& Anr. v.
Union Of India & Ors., 1991 Supp.(1) SCC 102. The appellant
in that case had, on December 17,1987, filed the bills of
entry for home consumption as required under Section 68 of
the Customs Act with a prayer for debonding the goods of
3935.364 MT which were stored in a private warehouse. The
customs authorities, on that very day,i.e. December 17,1987,
cancelled the license for warehousing the quantity of goods
in respect of which the bills of entry were filed by
cancelling the bond and deleting the said godown from the
relevant licence issued for the quality of 11,500 MT. The
keys of the godown were also handed over to the appellant
simultaneously, as a result of which though the goods
remained in the said godown but not as a warehouse and the
appellant was allowed to remove the goods without payment of
any duty. It was not disputed that the remaining goods were
also stored in a private warehouse and the appellant had
filed bills of entry and compiled with all the required
formalities for debonding and clearance of the goods on
January 28, 1988 and that the appellant was entitled to an
order made in the show cause notice dated February 16,1987
in view of the decision of this court in Wallace Flour Mills
Co.Ltd. v. Collection of Central Excise, Bombay Division II
1989 (4) SCC 592, wherein it was decided that the rate of
duty prevalent on the date of removal is only applicable.
It was held that since the goods were removed after
September 17, 1987 excise duty was payable on the same. The
Assistant Collection did not go into the merits of the claim
of the appellant that they were not using power for
manufacture of fireworks. The said order of the Assistant
Collector of Central Excise was affirmed in appeal by the
Collector (Appeals) in his order dated August 1,1991.