AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 392
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....ge rate of Japanese Yen 100 equivalent to Rs. 52.62/-. The system calculated the duty of Rs. 10,57,259/- for an assessable value of Rs. 36,91,648/-, while the actual duty with the correct exchange rate was Rs. 12,52,985/-, resulting in the short collection of Rs. 1,95,726/-. 2. Accordingly, a Show Cause Notice dated 02.02.2009 was issued to the appellant proposing to demand differential duty of Rs. 1,95,726/- along with interest in terms of Notification No. 114/08 (NT) dated 24.10.2008. In adjudication, the Original Authority vide Order-in-Original dated 29.01.2010 confirmed the differential duty demand as proposed in the Show Cause Notice with interest thereon. In appeal, the Commissioner (Appeals) vide impugned order dated 18.10.2012 up....
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.... "Where the whole of the goods or any part thereof are transferred to another person, the transferee i.e., In-Bond buyer of the warehoused goods shall execute a bond in a manner specified in Sub-Section (1) or Sub-Section (2) and furnish security as specified under Sub-Section (1) of Section 50 of the Customs Act, 1962." (iii) Although the In-bond buyer filed the Bill-of-Entry for home consumption as per Section 68 and declared the import duty payable in respect of such goods, an order for clearance of such goods for home consumption has been made by the proper officer, as per the warehousing Bill-of-Entry assessment order. The Proper Officer who is allowed said goods clearance, not factored due declaration furnished in Ex-bond Bill-o....
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....ery of duty that was short levied. If so, when the initial levy of duty was on the customer who filed the Bill-of-Entry for home consumption, the short levy should also have been addressed to that customer. (vii) The definition of importer under Section 2(26) of the Customs Act, 1962 read as "in relation to any goods at any time between their importation and the time when they are cleared for home consumption includes any owner or any person holding himself out to be the importer". It is well settled that import is complete only when goods have been cleared for home consumption and not when the goods are warehoused. In the present case, the person clearing the goods for home consumption is Shri. Ramesh Balasaheb Jagtap, who has filed the....
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....mption or for warehousing, a Bill-of-Entry has to be filed only under Section 46 ibid. From the conjoint reading of Section 14 and Section 46 of the Customs Act, 1962, it becomes clear that whether the Bill-of-Entry is filed for home consumption or for warehousing, the rate of exchange that would be applicable would be that which is in force on the date on which such Bill-of-Entry is presented. In case of warehousing, this would mean that the exchange rate at the Into-Bond stage in a Bill-of-Entry for warehousing filed under Section 46 ibid, will apply. 7.2 There is also a provision in Section 59 (2) ibid., to permit the importer to execute a general bond on any such amount as the competent authority may approve, in respect of warehousing....
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....bond was given by such appellant, inter alia, to comply with the provisions of the Act and the rules and regulations made thereunder in respect of the impugned goods. This being so, the liability to pay up the differential duty liability arising out of incorrect exchange rate adopted at the time of filing of Bill-of-Entry under Section 46 ibid., albeit for warehousing, would have fallen on the shoulders of the appellant if the said warehoused goods had been cleared by them for home consumption as per the procedure laid down in Section 68 ibid. 8.3 However, it is an undisputed fact that the goods after warehousing had been sold in Bond to one Shri. Ramesh Balasaheb Jagtap and that the Ex-Bond Bill-of-Entry No. 876548 dated 28.10.2008 was f....
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....er of the goods. In this case, the appellant is the original owner of the goods and Shri. Ramesh Balasaheb Jagtap is the transferee. Hence, such import duty that is required to be calculated on the assessable value under Section 14 ibid is calculated with reference to the rate of exchange as in force on the date on which the Bill-of-Entry was filed under Section 46 (for Into-Bond warehousing).The rate of duty in case of goods cleared for a warehouse under Section 68 as per the provisions of Section 15 (b), will be that applicable on the date on which the Ex-Bond Bill-of-Entry for home consumption has been filed. 8.6 However, as found by us above, since the goods stand transferred by the appellant to Shri. Ramesh Balasaheb Jagtap, with per....