2026 (1) TMI 1512

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.... filed by Appellant-Assessee, it was found that during the period October 2009 to May 2014, the Appellant cleared packing materials like HDPE drums, MS barrels/Carbyous at 'nil' rate of duty declaring them as "Organic Compounds" falling under Chapter Heading 29420090 of CETA. Further enquiry revealed that they purchased raw materials contained in the impugned packing materials without payment of duty in terms of Notification No.52/2003-Cus dated 31.03.2003 and 22/2003-CE dated 31.03.2003, as the case may be, and after using them cleared the empty containers without payment of duty as per Board's Circular F.No.305/68/86-FTT dated 15.07.1986. After detailed investigation and recording statements from various persons, a Show Cause Notice No.17....

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....Cross examination wherein he deposed that the MS barrels/HDPE drums cleared were only 'scrap'; 3.2 Non-resuable packing materials are eligible for clearance without duty in terms of Export-Import Policy (EXIM Policy) and Notification No.52/2003-Cus and Board circular dt. 15.07.1986. However, demand is made on the basis of statements recorded. Our attention is drawn to the statement of Shri P.S. Dawooth, Proprietor of M/s. P.S.D. Traders, wherein it is stated that he purchased drums in good condition on "rate per drum basis" and sold to M/s.Benny Trading Company, who in turn converts such drums into HDPE Chips. Thus, ultimately the drums have not been put to repeated use, and only serve as 'scrap'. The Adjudicating Authority disregarded t....

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....not sustainable. He prayed that Appeal may be allowed. 4. Ld. A.R Shri M. Selvakumar supported the findings in the impugned order. 5. We find that the following issues that arise for our consideration are : (i) On the facts and circumstances of the case whether the Revenue has proved that what was cleared by the Appellant was 'scrap' ? (ii) whether invocation of extended period is justified ? 6. We have carefully gone through the documents placed on record and we have also carefully considered the rival contentions. A perusal at the SCN indicates that initially the Appellant relied on the Board's Circular F.No.305/68/86-FTT (supra) in support, we find that it is not an absolute one; rather conditional. One of the ....