TaxTMI 
TaxTMI 
2010 (3) TMI 781
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....:- 1. Whether in view of the above mentioned wrongful intention, connivance and mis-statement before the Director General of Foreign Trade (DGFT) Authority by the importer which was not revealed at the time of import but in the subsequent investigation, the subject license can be held as a valid license in terms of Customs Notification No. 55/2003 and, therefore, demand of duty may be issued under extended period under Section 28 of the Customs Act, 1962? 2. Whether the invocation of the extended period under provisions of Section 28 of the Customs Act, 1962 and imposition of penalty under Section 114A and 117 of the Customs Act, 1962, should not be sustainable due to the afo....
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.... show cause notice covering one bill of entry, came to be issued in May 2005 by the Appraiser Customs, answerable to the Assistant Commissioner of Customs. Kandla proposing to deny the benefit of exemption to furnace oil. Pursuant to the said show cause notices, the respondent filed its replies. 2.3 In the meanwhile, pursuant to the investigation by DGCEI authorities, a show-cause notice dated 30th November, 2005 answerable to the Commissioner of Customs, Kandla demanding differential customs duty of Rs. 2,11,47,947/- on 8000 MTs of imported oil came to be issued. The said show cause notice was adjudicated by the Commissioner of Customs vide Order-in-Original dated 4th December, 2006 whereby he confirmed the demand of duty of ....
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....n compliance with the said condition, the respondent had filed a certificate dated 14th February, 2004 issued by Shri Deepak C. Shah, independent Chartered Engineer along with the application before the DGFT which was to the following effect : "I further certify that essentiality of Furnace Oil as consumables to be imported under EPCG application dt. 6-2-2004 for generation of Electric Power from Captive Power Plants." The Tribunal was of the view that it was clear from the above certificate that the description of the goods to be imported was disclosed in unambiguous terms and the purpose for which the same was to be imported was also fully disclosed. The said certificate clearly mentions the product to be imported as 'Furnace Oil' and use....
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..... The said letter clarified that the Chartered Engineer had disclosed Furnace Oil as the product to be imported which was a consumable to be used in the captive power plant. The Tribunal, accordingly, held that in the facts and circumstances of the case, no suppression or mis-statement could be attributed to the respondent so as to justify invocation of the extended period of limitation, and allowed the appeals on the ground of limitation. 5. From the facts noted hereinabove it is apparent that the Public Notice dated 21-1-2004 permitted import of spares including refractories and consumables. As per the procedure for obtaining EPCG licences, the applications were supported by certificates issued by Chartered Engineer. Shri Deepak C....
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.... suppression or mis-statement could be attributed to the respondent, the extended period of limitation could not have been invoked under Section 28 of the Act. 6. Examining the facts of the case from another angle, Section 28 of the Customs Act provides for issuance of show-cause notice when any duty has not been levied or has been short-levied or erroneously refunded or when any interest payable has not been paid, part paid or erroneously refunded (a) in case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, within one year; (b) in any other case within six months from the relevant date on the person chargeable with duty or interest. The....