2007 (5) TMI 428

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....processing of the imported material be exported. Duty-free clearance was obtained by the appellants upon execution of a bond in terms of the Notification. Apparently, under the bond, the assessing authority was required to furnish proof of export, which was not furnished. Eventually, by a letter dated 8-6-98, the Assistant Commissioner of Customs (Group I & II) requested the appellants to pay 'bond value' of Rs. 17,50,835/- immediately, failing which, it was warned, action would be initiated in terms of Section 142 of the Customs Act. A reminder dated 7-9-98 was also sent by the Assistant Commissioner. Apparently, this demand was not honoured by the party. Ultimately, on 12-10-98, the 'proper officer of Customs' issued to the appellants a "....

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....ond by them. She has also rejected the appellants' plea of time-bar on the premise that a demand of duty raised on the ground of breach of conditions of exemption Notification cannot be resisted on such a ground. According to the appellants, where any amount of duty is demanded under Section 28 of the Customs Act, the plea of time-bar is available to the noticee. In this case, the bill of entry was filed on 31-12-96 and the show-cause notice was issued on 12-10-98 without invoking the extended period of limitation. Therefore, according to the appellants, the demand of duty is time-barred. Ld. Counsel for the appellants and ld. SDR for the respondent have reiterated the respective contentions. Ld. SDR has particularly referred to the annexur....