TaxTMI 
TaxTMI 
2018 (2) TMI 159
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....e manufacture of paper other than newsprint, a team of officers visited the manufacturing unit situated at Nagpur on 16th November 2007 and conducted enquiry/investigation. 2. The relevant notification and the entries are quoted herein below for ready reference:- 152. 47.07 All goods imported for use in, or supply to, a unit for manufacture of paper or paperboard 5% Nil 20 152 4707 (A) All goods imported for use in, or supply to, a unit for manufacture of paper or paperboard other than newsprint; 5% - 20 (B) All goods imported for use in, or supply to, a unit for manufacture of newsprint 5% Nil 20 ; By amendment by Notification 66/2004-Cus. dated 9.7.2004, in entry No.152-A the words NIL, appearing in the column pertaining to additional duty of customs were substituted by -'. Consequently, waste paper imported for use in or supply to a unit for manufacture of paper or paper board other than newsprint attracted 5% basic customs duty as well as the CVD as applicable. After the above mentioned amendment, sr. no.152-A of Notification No.21/2002-Cus. prescribes concessional rate of basic customs duty of 5% adv. to all goods fa....
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....issued end use certificate which was duly produced before the Assistant Commissioner of Customs at the port of import. He was further pleased to discharge the bond given by the appellant at the time of clearance of the consignment of waste paper. 4. During the course of enquiry/inspection on and from 16th November 2007, Shri J.N. Panpaliya, authorized signatory, had stated that the factory was using indigenous as well as imported waste paper in the ration of 60:40 to get the required brightness and tensile strength in the newsprint. This is also confirmed by Shri Upadhyay, manager-pulp. Another statement of Shri Poonamchand Malu, director, was recorded by the officers, who stated that he was responsible for all work of the unit and in respect of imported waste paper, the appellant had furnished undertaking with the Assistant Commissioner of Customs for using the imported waste paper for the specified purpose and subsequently, the end use certificate had been obtained and submitted before the Assistant Commissioner of Customs. Mr. Malu also stated that sometimes the factory had cleared paper as writing paper other than newsprint. Mr. Panpaliya further admitted that so far some qu....
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....istant/Deputy Commissioner of Central Excise. Thus they have obtained the end use certificate fraudulently, by misdeclaring that the imported waste paper has been fully consumed in the manufacture of newsprint as submitted by them from time to time. Thus the appellant has wrongly claimed concessional rate of duty of 5% BCD and full exemption from CVD under entry at serial No.152-B of Notification No.21/2002-Cus. with intention to evade the customs duty on the imported waste paper. It also appeared that the appellant is liable to pay the differential BCD, CVD along with cess on the quantity of waste paper that has been consumed in the manufacture of paper other than newsprint. The details are worked out by Revenue, more fully Annexure C to the show cause notice. Accordingly the appellant was required to show cause as to why 1095.518 MT of waste paper valued at Rs. 56,21,539/- imported under Notification No.21/2002-Cus. as amended, should not be confiscated under Section 111(o) of the Customs Act and further why not customs duty amounting to Rs. 15,51,674/- including cess leviable on imported waste paper which has been used in the manufacture of paper other than newsprint and cleared....
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.... available to the importer, even if not claimed at the time of import. Reliance was placed on the ruling of Hon ble Supreme Court in the case of Share Medical Care vs. UOI - 2007 (209) ELT 321 (SC). Thus, on applying the ratio of the ruling of the Hon ble Supreme Court, the benefit of exemption at entry at serial No.152-A is liable to be allowed to the appellant and the duty payable works out to Rs. 9,63,695/-. Further, the goods are not liable to confiscation and consequently penalty under Section 114A is also not imposable. It was further submitted that as the appellant had already paid an amount of Rs. 10 lakhs at the time of investigation, before issuance of show cause notice, as against the correct duty liability of Rs. 9,63,695/-. Hence applying the law laid down by the Hon ble Bombay High Court in the case of Gaurav Mercantiles Ltd. - 2005 (190) ELT 11 (Bom.), no penalty is imposable. 7. The show cause notice was adjudicated by the Commissioner vide the impugned order-in-original confirming the proposed demand amounting to Rs. 15,51,674/- under Section 28 of the Act along with interest. Further, as regards the imported waste paper of 1095.518 MT valued at Rs. 56,21,539/-,....