2006 (9) TMI 430

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....ral Excise, Kolkata by his impugned order has set aside the Order-in-Original passed by the Maritime Commissioner of Central Excise, Export Redund Branch, Kolkata-I Commissionerate, who in turn, confirmed the Central Excise basic duty of Rs. 2,97,125.00 (Rupees Two lakhs ninety-seven thousand and one hundred twenty-five only) and the Additional Excise duty of Rs. 44,569.00 (Rupees Forty-four thousand and five hundred sixty-nine only) under Section 11A of the Central Excise Act, 1944, charging interest at the rate of 24% per annum and imposing equal amount of penalty. The Respondent M/s. Rahul Computex Pvt. Ltd. a merchant exporter, after executing a B-l Bond on 25-10-02 with the Maritime Commissioner of Central Excise, Kolkata-I Commissione....

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.... export without payment of duty inside the territory of the country for the extra period without legal validity of ARE-ls. It is obligatory on the part of the exporter that the goods shall be exported within six months from the date of clearance from the factory. The validity of the bond had lost on 31-3-04. Even if the bond was valid, the exportation should be completed within six months from the date of the clearance of the goods from the factory under ARE-ls which could be extended by the proper authority as provided in the Notification No. 42/2001-C.E. (N.T.), dated 26-6-01. By the time, the appellant approached for extension of time limit, the ARE-1s became invalid. 3. (i) In the appeal proceedings before the Commissioner (Appeals),....

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....round urged by the Department in this appeal is that Rule 19(3) of Central Excise Rules, 2002 read with Notification No. 25/2002 dated 22-7-2002 as amended by 15/05 dated 1-3-2005 laid down certain conditions to the effect that the exporters has to execute a bond for undertaking export and that the goods cleared without payment under ARE-1 should be exported within six months from the date of such clearance. In the instant case, there was no valid bond on the date of export since expired on 31-3-2004, much before the date of export. The exporters even failed to export the goods within extended period of time The Commissioner (Appeals) waived the statutory provisions, which is beyond his jurisdiction. 6. The ld. Advocate for the Resp....

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.... the extension of time could also be granted post facto basis. In respect of validity period of the bond he relies upon the judgment of Hon'ble High Court of Kolkata in the case of Indian Aluminium Co. Ltd., 1988 (36) E.L.T. 435 (Cal), the following principles are evolved in the judgment:- (a)     Since the goods were exported in terms of Rule 13 which permits such exportation free from excise levy, the demand for such duty is not sustainable. (b)     The Bond that is required to be executed under Rule 13 is not by way of security for payment of the unpaid duty on the exportation being completed, but it stands as security only for proper exportation of goods. (c)     Rule ....