2019 (8) TMI 283

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....ions of Notification No. 25/2003-Cus dated 31.03.2003 and Notification No. 22/2003-CE dated 31.03.2003. The Preventive Officers have visited the premises of the appellants and observed that in respect of Bond No. 30/2005 (originally bonded under bond no. 14/96 dated 02.07.1996 by M/s Axes Technologies Pvt. Ltd., which was taken over by the appellant). No extension of the warehousing period was sought beyond the stipulated limit of five years and that the appellants were unable to identify the said capital goods and that the goods were transferred to unit II of Tech Mahindra (R&D) without following any procedure of Inter Unit Transfer. The Department alleged that it is a case of illegal removal of goods from the warehouse and demanded duty o....

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....r prohibited goods and have not been removed from the bonded warehouse, imposition of penalty is not sustainable. 3. Per contra, the Learned AR reiterated the finding of the OIO and OIA and relied upon the Hon'ble Supreme Court decision in the case of JSW Steel Ltd. Vs CCE [ 2015 (325) ELT 629 (SC)]. 4. Heard both sides and perused the records of the case. 5. We find that there are two issues in this case. (i) Whether the warehousing period of the capital goods gets automatically extended with the renewal of warehousing license under Section 58 of the Customs Act are of separate extension of the capital goods lying in the warehouses has to be obtained. (ii) Whether inability to produce the warehoused goods for ver....

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....e time frame provided in the law. There is no denying that this practice does distract the units attention from export production and the units are always busy in preparation of obtaining timely extension of warehousing to avoid action under law for delay. As you are aware that the EOU/EHTP/STP units are required to obtain private bonded warehousing licence u/s. 58 of the Customs Act. The said licence is valid for a period of 5 years and the units are required to apply for renewal after every 5 years. The Board in order to obviate the difficulties of the EOU/EHTP/STP units has decided to allow extension of warehousing of all the capital goods installed or put into use, simultaneously at the time of renewal of warehousing licences i....