TaxTMI 
TaxTMI 
2006 (2) TMI 480
X X X X Extracts X X X X
X X X X Extracts X X X X
....tored in the facility set up by the respondents. The respondents imported LPG and later cleared the same from the facility after availing exemption from payment of SAD under Notification No. 56/98-Cus dated 1-8-1998. During the material time, LPG, a commodity governed by the Administrative Price Mechanism (APM), was imported for a consolidated quantity by the IOC and distributed to other oil companies based on their indents. The transaction was done on the High Seas Sale basis. Revenue proceeded against the respondents to deny the benefit of the exemption under Notification No. 56/98-Cus dated 1-8-1998 for the period from 1-8-1999 to 31-10-1999 on the following grounds. (a) LPG is sold on High Seas Sale Basis by IOC....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stored in the same storage tanks at M/s. HPCL Terminal. Hence, mixing is not only inevitable but intentional due to the infrastructure built up by M/s. HPCL at Mangalore terminal. Hence, the imported Commercial butane (LPG) is not cleared as such. (ii) Further M/s. HPCL have requested for permission for mixed bonding of LPG vide letters dtd. 24-9-96, 20-11-96 and 4-2-97 and accordingly the Asst. Commissioner of Customs has accorded the permission on FIFO basis. This clearly implies the intention of M/s. HPCL to mix the imported butane and indigenous LPG. Therefore imported LPG is not sold as such. (iii) Under Notification No. 56/98 dtd. 1-8-98 the imported goods cleared as such are eligible for exemption of S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t is leviable on the sale or purchase of goods. SAD is basically in lieu of Sales Tax. The Finance Minister, while presenting the proposal for levy of SAD, has stated that the goods imported for subsequent trading were specifically left out of the purview of SAD. The above position is clarified by CBEC Circular dated 29-3-1999. Notification No. 34/98-Cus dated 13-6-98, as amended by 56/98-Cus dated 1-8-1998 granted exemption from payment of SAD if the goods are sold as such. The declaration given in the Bills of Entry in terms of Notification No. 56/98-Cus shows that the imported goods which are cleared availing exemption from SAD should not be sold in an area where sales tax is not payable. Hence, the only relevant criteria for levy of SAD....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d for levy of SAD under the omitted Section 3A of the Customs tariff Act does not get saved under Section 6 of the General Clauses Act, since it saves proceedings only if a Section is repealed. It is settled by the Apex Court in the case of Rayala Corporation v. Director of Enforcement, New Delhi - 1969 (2) SCC 412 that omission is not equal to repeal and therefore any proceedings initiated under a Section which has been omitted cannot be continued and consequently, the present proceedings which are in continuation of the original proceedings are liable to be terminated at this point itself. This view has been expressed by the Supreme Court in the case of Kolhapur Canesugar Works Ltd. v. UOI reported in 2000 (119) E.L.T. 257 (SC). (viii) S....