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of <h1>Tribunal rules in favor of appellant due to time-barred show cause notice</h1> <h3>M/s. Global Entrade Versus Commissioner of Customs (Port), Kolkata</h3> M/s. Global Entrade Versus Commissioner of Customs (Port), Kolkata - TMI Issues involved:The appeal concerns the imposition of duty under Section 18 of the Customs Act, demand for payment of differential duty, enforcement of Provisional Assessment Bond, and invoking the bank guarantee.Details of the judgment:1. Background and Registration of Contract:The appellant applied for registration of a contract for setting up a new unit for cold storage facilities under Project Import Regulation 1986 (PIR 1986) with Essentiality Certificates issued by the Ministry of Food Processing Industries. Two Bills of Entry were filed, with the appeal limited to one Bill of Entry claiming concessional customs duty under a specific notification.2. Short Levy of Duty and Dispute:After queries by the department regarding duty application, a demand notice was issued for short levied amount. The appellant disagreed with the calculations, leading to a dispute over the duty amount. The department later issued a show cause notice (SCN) regarding finalization of duty assessment and payment.3. Time Limit for SCN and Compliance Issues:The SCN was issued after a significant lapse of time, leading to a defense by the appellant citing time limitations based on legal precedents. Compliance issues related to Project Import Regulations were also raised during the proceedings.4. Appeals and Observations:The appellant appealed to the Commissioner (appeals) on grounds of limitation, citing legal precedents on reasonable time limits for issuing demand notices. The Commissioner dismissed the appeal, leading the appellant to approach the Tribunal.5. Tribunal Decision:The Tribunal considered the time lapse between filing the Bill of Entry and issuing the SCN, finding it beyond a reasonable period. It noted the appellant's compliance with Project Import Regulations and held that the SCN was issued beyond the permissible time limit. The Tribunal allowed the appeal and set aside the impugned order, granting consequential benefits to the appellant.6. Regulation 7 of PIR 1986:The Tribunal also referenced legal precedents to establish that Regulation 7 of PIR 1986 is not a mandatory provision, supporting its decision to allow the appeal based on the time limitation issue.In conclusion, the Tribunal ruled in favor of the appellant, finding the SCN time-barred and setting aside the impugned order, granting consequential benefits as per the law.
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