2003 (6) TMI 398

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....of Customs enhanced the value of the goods to Rs. 5,93,386.43 and demanded duty on the differential value. This demand was challenged by the party before the Commissioner (Appeals). But, that was not successful. The party preferred appeal to this Tribunal and, by Final Order No. 990/98-A, dated 15-7-98 [1999 (113) E.L.T. 951 (T)], the Tribunal set  aside the enhancement of value in respect of a few parts and upheld the value enhancement in respect of the rest of the parts. The matter was accordingly remanded to the original authority for re-quantification of assessable value and duty as also redemption fine and penalty. Pursuant to this remand, the adjudicating authority requantified the assessable value and duty and reduced the redemp....

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.... the Dy. Commissioner was affirmed by the Commissioner (Appeals). Hence, the present appeal. 2.  Heard both the sides. Ld. Counsel submits that the refund claim has been rejected on the sole ground of time bar. In the refund application, the assessee relinquished the title to the goods covered by the Bill of Entry, under sub-section (2) of Section 23 of the Customs Act. Where the title to such goods is relinquished at any time before any order is passed by the proper officer of Customs under Section 47 for clearance of the goods for home consumption, the owner of the goods has no liability to pay duty on the goods.  In the instant case, Counsel submits, no order for clearance of the goods has so far been passed by any authority ....

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.... sub-section (1). This sub-section is silent on abandonment of goods. Sub-section (2), which arises for closer scrutiny in this case, reads as under :- "The owner of any imported goods may, at any time before an order for clearance of goods for home consumption under Section 47 or an order for permitting the deposit of goods in a warehouse under Section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon." This provision enables the owner of any imported goods to relinquish his title to the goods at any time before an order for clearance of the goods for home consumption under Section 47 of the Act has been made. It further says that, upon such relinquishment of title, the owner....

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.... under Section 47 of the Customs Act, inasmuch as it had directed the importer to redeem the confiscated goods. If that be so, the importer has abandoned the goods, i.e., relinquished, his title to the goods, only after an order under Section 47 for clearance of the goods for home consumption was passed. For Section 23(2) to be applicable, the goods should have been abandoned before such order was passed. Hence, sub-section (2) of Section 23 is not applicable to the facts of this case and consequently the Counsel's contention that the amount sought to be refunded had ceased to be a duty upon abandonment of the goods is untenable. Further, the "no-duty" plea is grossly inconsistent with the other plea of provisional assessment of duty. 6. &....