TaxTMI 
TaxTMI 
2016 (2) TMI 541
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....t. Warehouse in DTA as well as DFS were licensed under Section 58 of the Customs Act as provided Bonded warehouses. At all times, the goods were transferred from the bonded warehouse in DTA within the permissible warehousing period and entries were made in the Bond register on such transfer, which took place under escort. However the requirement of procedure and records, Bond wise and Bill of Entry wise were only maintained in the DTA warehouse. In terms of Standing Order dated 13/5/1969 the goods on transfer to the DFS were entered in the stock register in DFS maintained commodity wise. There being no other requirement, the original identity of the goods thereafter with reference to the Bond number, under which they were imported stood extinguished. This practice was not objected to by the Customs. Further the Bond opened in the DTA warehouse was closed and audited by Customs on transfer of all goods to the DFS. The General Bond under Section 59(2) of the Customs Act covered goods stored in the DTA as well as in the DFS. Before expiry of the bond period of 6/12/2008 appellant had closed their DFS operation from January, 2008. The DFS were operated without double lock system as exi....
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.... goods transferred from a Central excise bonded factory, in the form prescribed in this behalf by the Assistant Collector of Customs, Air Customs Pool. (Appendix III for warehouse at the Air Port and appendix IV for the stock in the Duty Free Shop itself. The release from the warehouse at the Air Port to the Duty free shop will be against a release application (Appendix V). 6. i) The imported or indigenous, non duty paid goods permitted to be received and stocked in the Duty Free Shop shall be sold by the licensee only to persons proceeding out of India i.e. transit passengers and embarking passengers, on obtaining from them payment in approved foreign currencies. ii) Every sale shall be covered by a Sale Voucher (which shall be deemed to be the Shipping Bill for the purpose of Section 69 of the Customs Act, 1962) in the form prescribed by the Central Board of Excise & Customs, which shall show, inter alia, the name and Passport no. of the passenger to whom the sale was made, the destination to which he was proceeding and the flight number of his aircraft (Appendix VII). 8. The Internal Audit Department shall, once every week, check receipts of stocks with reference to the tr....
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.... pertaining to a Bill of Entry are sold, the same shall be shown as NIL in the column of closing balance of the stock register and the bonder shall put up all the documents relating thereto i.e. duplicate Bill of Entry or the Transfer Challan, the stock register and any other documents required for the purpose of audit to the Internal Audit Dept. The auditor shall scrutinize the documents and the entries in stock registers and if found in order, shall impress his department's stamp on the stock register and on the Bill of entry or the transfer challan and initial the documents in token of having audited. The audited Bill of entry of the transfer challan shall be put up to the Assistant Commissioner/Dy. Commissioner of Customs (Bond) New Customs House, Mumbai for the purpose of cancellation of the bond. When the whole of the goods covered by the bond Bill of Entry have been exported of otherwise duty accounted for and when all amount due on account of such goods have been paid, the Asstt. Commissioner/Dy. Commissioner of Customs (Bond) New Custom House, Mumbai shall cancel the bond for that particular Bill of Entry from the General Bond executed by the Bonders. 6. The main cont....
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.... date of expiry of the licence. In the event of failure to do so no clearance shall be permissible between the period after the expiry of the licence and its renewal." It is clear that the appellant were required to extend the bond period till the disposal of the goods. 6.1 The Adjudication order under para (1)(c) clearly brings out that appellant produced a statement (Annexure-3) containing entries of flood affected warehoused goods in103 demand notices. These entries proved that warehoused goods in the 103 demand notice remained warehoused beyond the initial bond period violating provisions of Section 61(1)(b) of the Customs Act, 1962. There has been no challenge to this fact. Each of the demand notice specifies the Date of Bond and Date of Expiry. 7. It is a fact that appellant applied for remission of duty which was rejected vide letter ITDC/CUS/24-101/ADMN/TECH dated 12/3/2008. But it is also a fact that no appeal was filed against the rejection for remission. There is no challenge by the ITDC to the fact that the bond period of the goods for which remission was sought had already expired. 8. We also note from the records that vide their letter dated 30 th August, 2007, E....
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....end to a period after the lapse of the extended period merely because the licence holder has not cleared the goods within the stipulated time................ When the goods are not cleared within the period or extended period as given by the authorities, their continuance in the warehouse will not attract Section 23 of the Act. .....................In this context the decision of the Bombay High Court in the case of Videocon International Ltd. is applicable and therefore the authorities concerned were justified in making demand for payment of customs duty. Whereas the decision of this Court in i2 Technologies Software Private Ltd. are not applicable considering the facts of the present case." We find the provisions of Section 23 and Section 69 are similar. Both provide that the title to the goods may be relinquished before an order for clearance of goods for home consumption has been made. In these circumstances, the decision of the High Court leads to the conclusion that the provisions of Section 68 regarding relinquishment will not be attracted when the goods are not cleared within the permitted period of warehousing. The Hon'ble High Court having considered the judgement in ....