AI Drafter 
TaxTMI 
TaxTMI 
2024 (4) TMI 917
X X X X Extracts X X X X
X X X X Extracts X X X X
....lants and upon verification of the warehouse and various records, they observed that non-bonded goods had been stored in the bonded tanks, whereas bonded tanks are meant for storage of only customs bonded goods; that the bonded goods covered under Bill of Entry (B/E) No. 6749977 dated 06.07.2023 had been stored in non-bonded tanks in the month of July' 2023, which is a clear violation of Section 60 ibid read with Section 71 ibid; that due to absence of the technical staff at the warehouse, the software maintained by the appellants could not be verified to ascertain, whether it is having audit trail facility as prescribed in para 2(c) of Circular No.25/2016 dated 08.06.2016. On the basis of investigation, the officers found that the appellants had failed to comply with the provisions of the Customs Act, 1962; Public Warehouse Licensing Regulations, 2016 and Warehouse (Custody and Handling of goods) Regulations, 2016 as well as the licensing conditions. For carrying out detailed investigation and to stop any further violations of the licensing conditions, the license of public bonded warehouse issued to the appellants was suspended on 07.12.2023 by the department as per the provision....
X X X X Extracts X X X X
X X X X Extracts X X X X
....khs only) on the Licensee M/s. Ganesh Benzoplast Ltd. (NSA1U116) under Section 117 of the Customs Act, 1962 read with Regulation 12 of Warehouse (Custody and Handling of Goods) Regulations, 2016, for non-reporting of time expired bond for one consignment in their warehouse. iv. For storing non-bonded goods in their bonded tanks 31 times, I impose a penalty of Rs. 1,00,000/- (Rs. One lakh only) on the Licensee M/s. Ganesh Benzoplast Ltd. (NSA1U116) for each count, totaling Rs. 31,00,000/- (Rs. Thirty-one lakhs only), under Section 117 of the Customs Act, 1962, read with Regulation 12 of Warehouse (Custody and Handling of Goods) Regulations, 2016. v. I impose a penalty of Rs. 50,000/- (Rs. Fifty thousand only) on the Licenses M/s. Ganesh Benzoplast Ltd. (NSA1U116) under Section 117 of the Customs Act, 1962, read with Regulation 12 of Warehouse (Custody and Handling of Goods) Regulations, 2016, for not having an Audit trail facility in their software. vi. I impose a penalty of Rs. 50,000/- (Rs. Fifty. thousand only) on the Licensee M/s. Ganesh Benzoplast Ltd. (NSA1U116) under Section 117 of the Customs Act, 1962, read with Regulation 12 of Warehouse (Custody....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vered thereunder were discharged from the vessel through high pressured pipe lines, which cannot be stopped mid-way during the process of discharge to avoid accidents and as such the same were stored in the public bonded tanks after discharging from the vessel by obtaining due discharge permission dated 30.04.2021 of the department. On the basis of the above submissions, learned Advocate prayed for setting aside the impugned order, more particularly the charges levelled against the appellants for confiscation of goods, imposition of redemption fine and penalties etc. 3. On the other hand, learned Authorised Representative (AR) appearing for the Revenue reiterated the findings recorded in the impugned order. 4. Heard both sides and examined the case records, including the written note of submissions filed by the appellants during the course of the hearing of the appeal. 5. We find that in support of the impugned order, the learned adjudicating authority has mainly dealt with the issues, concerning storage of bonded goods in non-bonded tanks, non-bonded goods being stored in bonded tanks, storage of goods imported by the licensee (appellants) in their own public bonded wareh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....department and out of charge was issued for removal of the goods from warehouse. 6.3 In respect of 31 B/Es, where the bonded goods were stored in non-bonded tanks, we have perused the said B/Es and the respective permission letters issued by the department, in permitting discharge of imported consignments from the vessel and loading of the same in bonded tanks. Such activities were also monitored by the customs department. The table given below along with sample copy of discharge permission letter for B/E No.5910654 dated 02.12.2019 (Sl. No.1 in the table) shows the details of B/Es along with the respective discharge permissions given by the Department: S. No. B/E No. & date Description Tank No. Discharge Permission Date 1 5910654/ 02.12.2019 Acetic Acid 107 28.11.2019 2 6722000/ 17.12.2021 Butyl Acrylate 119 17.12.2021 3 6747599/ 08.12.2021 Styrene Monomer 133 16.12.2021 4 4579345/ 06.07.2021 Orthoxylene 114/130 05.07.2021 5 5133481/ 21.08.2021 Mixed Xylene 106 18.08.2021 6 7926823/ 21.09.2023 Phenol 111 20.09.2023 7 7264....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clearing agent had specifically sought for permission from the competent authority for discharge and storing of the bulk liquid cargo in the specific tank(s) and upon grant of permission, the activities were undertaken thereafter. 6.5 With regard to B/Es No. 3786599 and 3787816 both dated 01.05.2021, we find that the submissions made by the appellants are acceptable that the goods covered thereunder were discharged from the vessel through high pressure pipe lines, which could not be stopped mid- way during the process of discharge to avoid accidents; and that when the consignments were discharged from the vessel, a quantity of 262.983 MTs of Mixed Xylene and 314.061 MTS of Toluene were stored in the public bonded tanks. On perusal of the case records, we find that the importer in respect of the goods under the said two B/Es were appellants themselves and prior to discharge of the imported goods from the vessel, the permission under the cover of letter dated 30.04.2021 were obtained from the Customs department. The said permission letter was issued on the condition that the discharge activity should be done under the Customs preventive supervision. Hence, we are of the view that....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the warehouse licensee, we find that none of the said provisions have been contravened or violated by the appellants inasmuch as in respect of all the B/Es listed above, the activities were carried out with the approval and necessary permission given by the department as well as under supervision of Customs. 8.2 Section 33 ibid mandates that unloading and loading of goods only should be done at the approved places with the permission of the proper officer of Customs. Interpreting the said statutory provisions, concerning import of liquid bulk cargo and storage of same in bonded warehouse, the Central Board of Excise & Customs (CBEC) have issued the instructions from File F. No. 473/19/2009-LC dated 09.05.2011 to the field formations in the following manner: "2.3 A harmonious reading of the above provisions indicates that imported goods may be unloaded only in a Customs area which is located in a Customs Station or a proper place approved under Section 8 in a notified Customs port, airport etc. 3. However, as per Section 33, "Except with the permission of the proper officer, no imported goods shall be unloaded, and no export goods shall be loaded, at any place o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed the permission from the department for carrying out the activities within the bonded area. Thus, in our considered view, the provisions of Section 111(h) ibid shall not be applicable in the case in hand. Section 111(j) ibid deals with the situation for confiscation of any dutiable or prohibited goods, removed or attempted to be removed from a customs area or a warehouse without the permission of the proper officer or contrary to the terms of such permission. It is a fact on record that the bulk liquid cargo dealt with by the appellants are not prohibited for importation and that the appellants had obtained due permission from the customs department for carrying out the activities within the warehousing premises, which is evident from the above tables, mentioning the date of permissions issued by the department including the specific tank numbers for which such permissions were being issued by them. Therefore, we are of the opinion that the provisions of Section 111(j) ibid are not attracted for confiscation of goods in the circumstances of the present case. 10. Since there is no improper importation of goods and more specifically, the goods are not liable for confiscation as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ISCHARGE PERMISSION FOR 15750,000 MTS (Approx. +-5%) OF EDIBLE OIL ARRIVING PER VESSEL "MT-CHEM SINYOO " A/C M/S ANA OIL & FATS INDIA PRIVATE LIMITED. We understand from the shipping agent, that the subject vessel is scheduled to arrived on 15.09.202 & might berth any time for discharge the above referred cargo through pipeline in Tank No.-1 OF MIS SURAJ AGRO, Tank No. 111, 505 OF MS IMC LTS & Tank No140A 14CD OF MIS GAMESH BENZOPLAST LIMITED-JNPT. Tank No.- 501 & 504 OF IMC LIMITED-JNPT Since, we might not be abic to get the SE assessed before berthing of the vessel & in order to avoid heavy demurrage of vessel @23,000 $ to 25,000 $ per day which is payable in foreign currency, We hereby request to you that kindly allow us to discharge the cargo from vessel to Tank No.-1 OF M/S SURAJ AGRO, Tank No. 111, 505 OF M/S IMC LTS & Tank No40A 40D OF MS GAMESH BENZOPLAST LIMITED JNPT. Tank No.-501 & 504 OF IMC LIMITED-JNPT We undertake not to get the delivery unless & until the Bill of Entry is completed in all respect with Custom Duty Payment & Out of Charge . Your's faithfully For Ms MOTUMAL & CO. PERMISSION....