TaxTMI 
TaxTMI 
2024 (1) TMI 591
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....ion 58 of the Customs Act, 1962 and they had to comply with the procedures specified in Trade Facility No.50/2005 dated 5.4.2005. As per this Trade Facility Procedure, the appellant for every sale made from the duty-free shop should be covered by a voucher which shows the name of the passenger to whom the sale was affected, passport number, flight number of the aircraft of arrival and departure. These sale vouchers are to be countersigned by the customs officer. However, the officers investigated, it was noticed that between 17.9.2008 to 17.11.2008 the appellant had launched a promotional offer for sale of Johnnie Walker and Smirnoff brand liquor in terms of "buy JW centurion 3 for 2, buy JW Black 3 for 2 and buy Smirnoff 3 for 2". The said....
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....ssenger could carry 2 Litres of liquor as free allowance and if anything, in excess, needs to be declared and pay the duty. Therefore, the duty should have been demanded from the passenger under Section 28 and not from the appellant under Section 72. To substantiate his claim, he has relied upon the decision in the case of Aarish Altaf Tinwala Vs. Commissioner of Customs (Airport) Mumbai in Order No. 634/2018-CUS(WZ)/ASRA/Mumbai dated 31.08.2008. Also relied on the following decisions: * Flemingo Travel Retail Ltd. vs. CCGST & CE: 2022 (64) GSTL 564 (T) * Hotel Ashoka vs. ACCT: 2012 (276) ELT 433 (SC) * Sandeep Patil & Flemingo Travel Retail P. Ltd. vs. UOI & Ors.: 2019-TIOL-2348-HC-MUM-GST. * A-1 Cuisine....
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.... respect of such goods cleared in violation of the conditions have been raised in terms of Section 72(1)(a) of the Act which provides for payment of customs duty chargeable on such goods removed in contravention of the conditions of the warehousing bond, along with interest and penalties. The provisions of Section 72 are different from Section 11A of the Central Excise Act. Section 72 pertains to the warehousing goods for which the bond is executed under Section 79 and there is no time limit for the recovery of such dues". In view of the above, it is submitted that since they are bound by the bond conditions, they are liable to duty along with interest and therefore, the impugned order needs to be upheld. 4. Heard both sides. Let's ex....
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....ds notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may 6[deem fit]. 4.1 The Trade Facility No.50/2005 issued by the Commissioner of Customs, Bangalore with regard to the sale of goods from Duty-Free Shop reads as follows: "(V) the imported or indigenous nonduty paid goods permitted to be received and stocked in the Duty-Free Shop shall be sold by the licensee only to the international passengers and on obtaining from them payment in approved foreign currencies. On arrival/ departure side every sale made by duty free shop shall be covered by sale voucher which shall be deemed to be the bill of entry/shipping will bill for the purpose of Section 68 or 69 of the Customs Act 1962 ....
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....se are liable to be dealt in terms of Section 72 of the Customs Act, 1962 and they are statutorily obliged to duly account for the goods which are bonded, to the satisfaction of the proper officer, is also not disputed. The Assistant Manager Logistics, Shri Ramesh Poojari of the appellant-company in his statement dated 3.4.2009 admitted that the promotional scheme launched by them provided for one imported liquor extra for purchase of two bottles as free allowance and he agrees that there has been a failure in complying the statutory requirements in preparation of Annexure-G which did not give details of signature of passengers/customs officers etc. Similarly, Shri Pradeep Lalchandani, Manager Operations in his statement dated 6.4.2009 stat....
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....s Authorities could verify and ascertain whether the strict conditions prescribed have been complied. The statements from the various persons in-charge of the duty-free shop and the scrutiny of the documents relating to DFS have revealed that the appellant have completely violated the conditions under which licenses were granted to them. 4.4 Therefore, from the above Sections, it is very clear that the licensee of the Duty-Free Shop is liable to pay duty, if the provisions of Sections and the Procedures laid down therein, are violated and therefore, the question of passengers paying duty does not arise. This has also been affirmed by the Tribunal in the case of Alpha Future Airport Retail P. Ltd. (supra) which has been upheld by the Supr....