2019 (4) TMI 397

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....mended notification bearing No. 65/99-Cus., dated 19-5-99, particularly the requirement therein that the imported capital goods shall be used within a period of one year from the date of importation or procurement, would apply to the case in hand as the appellant had imported the goods in November, 1997 i.e. prior to the date of issuance of the subject notification?" 2. The facts necessary giving rise to this appeal for answering the substantial question of law are that the appellant was granted the letter of permission as 100% Export Oriented Unit (for brevity 'EOU') for manufacture and export of wool yarn. The appellant has two divisions of the said 100% EOU, one at Butibori, Nagpur (Maharashtra) and another at Raipur (Chhattisgar....

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....bsp;(b)     Penalty of Rs. 15.00 lacs imposed on the appellant.  (c)     Imposition of penalty of Rs. 5.00 lacs each on S.N. Maheshwari & A.P. Khetan. 6. The said Order-in-Original was assailed before the Tribunal, which has now passed the present impugned order dismissing the appellants appeal and affirming the order passed by the Commissioner on 25-11-2013. 7. It is argued that the impugned order is based on application of Notification No. 53/97, dated 3-6-1997 which states that the imported goods shall be installed in bonded area within a period of one year from its importation, however, the said restriction of one year was inserted only on 19-5-1999 by way of Notification N....

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.... there is sufficient cause for not using them as above within the said period, allow;" 10. A careful reading of both the notifications, as extracted above, would manifest that after the amendment in May, 1999 exemption was permissible when the capital goods are installed or otherwise used within the bonded premises or re-exported within a period of one year from the date of importation or procurement thereof, the period of one year being extendable for a maximum period of five years. The appellant imported the goods in 1997 and kept at its Nagpur unit, but later on procured the goods without payment of duty for use in their Raipur unit. The appellant, in fact, applied for rewarehousing and having so procured the goods it were reware....