TaxTMI 
TaxTMI 
2008 (4) TMI 560
X X X X Extracts X X X X
X X X X Extracts X X X X
....e for import of Gold Bars without payment of duty under the Scheme for Export against supply by Nominated Agencies. The second appellant M/s. Rajesh Exports Limited (REL in short) had procured duty free gold bars from the first appellant during March, 2004 and had exported gold medallions to M/s. Star Jewellers, Singapore for which no foreign exchange was realized. Therefore, Revenue proceeded against the appellants for violation of the provisions of the following Notification/Instructions. (i) Notification No. 57/2000-Cus., dated 8-5-2000 (ii) Chapter 4 of EXIM Policy and relevant paras of Handbook of Procedures (iii) Reserve Bank of India's letter DBOD N. IBS 1519/23.67.001/98-99, dated 31-12-98 read with Circular AD(G.P. series) No. 7, dated 6-3-98 (iv) Circular No. 24/98, dated 20-4-98 of CBEC and (v) Public Notice No. 32/98, dated 21-5-98 issued by the Commissioner of Customs, Bangalore. The Adjudicating Authority held that 925 Kgs. of gold bars cleared without payment of duty by the first appellant were liable for confiscation under Sections 111(j) and 111(o) of the Cus....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... v. CC - 2006 (199) E.L.T. 636(T) (ii) In terms of CBEC Circular dated 20-4-1998, duty liability on the appellant viz. a nominated agency arises in the event of the exporter not fulfilling his export obligation within the prescribed period. It is not the Revenue's case that the exports have not been made. In fact, exports have been made and the general bond executed by the first appellant was cancelled by Customs Authorities after the appellants produced copies of the shipping bills evidencing proof of export of gold medallions by the Exporter, viz. M/s. REL, vide para 14.2 of the SCN. (iii) In terms of Notification 57/2000-Cus., dated 8-5-2000, the importer executes a bond with the Assistant Commissioner of Customs undertaking, to export either by itself or through other exporters gold jewellery or articles having gold content equivalent to the imported gold within a period 120 days from the date of issue of gold to the Exporters. In the instant case, admittedly, the articles of gold viz. gold medallions manufactured out of 925 kgs. of gold issued by the appellants have been exported by M./s. REL to Star Jewellers and proof of export have been submi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d in clauses (a) to (d) of sub-clause (1) of the said Section 72 have occurred in the instant case. Reliance was placed on Tribunal's decision in the case of Interface Connectronics P. Ltd. v. CC, Bangalore - 2004 (164) E.L.T. 95 (Tribunal). 6. Shri Kiran Javali, the learned Advocate, urged the following points :- The appellant (2) had procured gold from appellant (1) and paid for the same in Bangalore and utilized the same to manufacture and export jewellery. They were not concerned with the import of the material at any stage and had obtained the material locally in India on payment in Indian Rupees. The material was exported and the shipping bills were duly examined and let-export was ordered. They produced export documents to the Bank of Nova Scotia and in turn, the bank produced the proof to the Customs Authorities. The Customs Authorities accepted the same and cancelled the bonds executed by Bank of Nova Scotia. As the appellants were not concerned with the import at any stage, the levy of penalty under Section 112 is not sustainable. As the bond has been cancelled, further proceedings are not maintainable in view ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....administrative inconveniences". Therefore, he urged that the Revenue has a good case and requested the bench to order suitable pre-deposit. 8. We have gone through the records of the case carefully. The first appellant is the importer of the gold under "Export against supply by Nominated Agencies" Scheme under Chapter 4 of the EXIM Policy, 2002 to 2007. In terms of the Scheme, the first appellant supplied 925 Kgs of gold to the second appellant. The second appellant converted the gold to gold medallions and exported the same to a party in Singapore. However, the export proceeds had not been realized by the second appellant. Hence, Revenue proceeded against both the appellants. In terms of the relevant Notification No. 57/2000, dated 8-5-2000, the export of jewellery manufactured from the gold procured from the Nominated Agencies on loan basis must be completed within 120 days of release of gold by the Nominated Agencies. In the present case, the Nominated agency is the first appellant who supplied gold to the second appellant. Only when the gold articles are not exported within the stipulated time of 120 days, the Nominated agency is liable to pay the customs duty. This is ve....