1993 (8) TMI 210

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....nance bearing 297/2/77. CX-9, dated 23-9-1977 allowing exports of excisable goods under bond to Nepal on condition of sales realisation in free foreign exchange with the permission of the Reserve Bank of India, the Collector granted permission for export of five motor vehicles under bond, in this case. The clearance documents indicate the particulars of the order of the Collector granting permission for removal of the motor vehicles under bond, in the case of each vehicle. After clearance of the goods under bond, RT 12 returns were also filed in the months of February and March, 1981 and these returns were also accepted without any objection. However, two demands were issued by the Supdt. seeking to recover the duty involved on these five v....

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....their favour, even on merits their appeal is required to be allowed for the following reasons. 4. In each case, they had taken permission of the Collector and the internal communication from the Board, based on which the demand has been raised by the Supdt. was not communicated to the trade, till the issue of the Trade Notice on 3-7-1981 vide Bombay Collectorate Trade Notice No. 86(MP) General/(21)/1981. Their exports have taken place prior to the issue of the Trade Notice as early as during February and March, 1981. If there had been an internal communication received from the Board, the Collector would not have granted the permission and the officers would not have acted on this permission and allowed exports. In this context, he ....

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....e demands have been raised within a period of 6 months and hence they are recoverable. 6. After hearing both sides, we find that apart from the fact that the show cause notices issued are found to be defective, as observed by one of us in the case decided in respect of a demand for 8 tractors, the appellants also have a case on merits. There is no dispute that each of the 5 vehicles was permitted removal under bond to Nepal in accordance with the permission granted by the Collector, in the context of the Ministry's Circular No. 297/2/77-CX. 9, dated 23-9-1977. It is also observed that this was circulated to the Trade under a circular and the copy produced before us is actually one circulated by Bombay Chamber of Commerce & Industry.....