2007 (8) TMI 500

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....etting up a refinery project for processing of Crude Petroleum Oil. They have applied through their letter dated 29-3-2004 for issuance of Private Bonded Warehouse Licence under Section 58 of the Customs Act, 1962 for warehousing of duty free goods required for setting up refinery project and subsequently for the operating refinery and plant and machinery including pipes, pipe fittings etc. in open and closed warehouse within their premises. Earlier the appellants were issued two private bonded warehouse licences in 1997. A case was booked against them for illicit clearance of imported plant and machinery valued at Rs. 600 Crores involving duty of Rs. 96,26,91,711/- from licensed warehouse and show cause notice dated 22-8-1999 was issued to....

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....ustoms Act, 1962 read with the above Circular referred. The show cause notice was adjudicated by the Asst. Commissioner, Central Excise, Jamnagar rejecting the fresh applications filed by the appellants holding that they have not fulfilled the conditions of the circular. 3. The appeal filed before the Commissioner (Appeals), Central Excise, Rajkot also met with the same fate. Hence this appeal. 4. The appellants have raised the following grounds in the Memo of Appeal :- (a)     The Commissioner (Appeals) had failed to appreciate the Circular No. 99/95 dated 20-9-1995 which was issued only to clarify certain doubts which have been expressed in some quarters regarding methodology to be followed while iss....

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....vi) and (vii) contained in para 3 of Circular No. 99/95-Cus. are as follows :-           "(vi) It may be ensured that in respect of new applicants, their record is clean and that the proprietor or partner or any of the directors are not involved in any customs duty evasion or smuggling offences and have not been subject to a penalty or other action under the Customs Law and similarly under the Central Excise law. Where the applicants have been found to be involved in such offences (other than technical offences), Commissioner may deny licences to such applicants;           (vii) In respect of existing warehouse-keepers if their track record has n....

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....f the licence it is to be observed as follows:- (a)     Circular No. 99/95 specifically draw attention to earlier Circular No. 68/95 and records that certain doubts have been arisen on the question of licensing of private bonded warehouse and for that purpose certain further guidelines are being laid down by the Circular No. 99/95. The above reading makes it clear that the Circular No. 99/05 cannot over-ride the stipulation of 5 years of track record which has been laid down in Circular No. 68/95.  The Commissioner in reading Circular No. 99/95 de hors circular No. 68/95 and holding that the period of 5 years prescribed was not relevant  for judging the  track record  is  not  on  co....