2000 (4) TMI 112

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.... India for use in the manufacture of specified finished goods. In respect of imported goods specified in list (A) the concessional rate of duty is 10% ad valorem while it is 20% ad valorem in the case of imported goods specified in list (B) and 25% ad valorem in the case of imported goods specified in list (C). The Notification also contains a proviso that the benefit will be available if the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. Under Rule 3 of these Rules, a manufacturer intending to avail of the benefit of the exemption Notification, shall obtain a Registration from the Assistant Collector of Central Excise having jurisdiction o....

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....o the appellants on 1-10-1997 for recovery of differential customs duty on the items imported during the period March, 1997 to August, 1997 on the ground that these items had been wilfully misdeclared as parts/components of colour picture tubes in order to avail the benefit of concessional rate of duty. The notice also proposed imposition of penalty on the appellant-company as well as on the Dy. General Manager (Materials) and the General Manager (Finance). The notice was adjudicated by the Additional Commissioner of Central Excise who confirmed the duty demand of Rs. 11,04,533.67 as differential customs duty plus Rs. 1,98,817.25 as CVD along with interest under Section 28 of the Customs Act, 1962 and imposed a penalty of Rs. 2.5 lakhs on t....

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....ation Certificate is only a procedural failure (which has been remedied subsequently by inclusion in the Registration Certificate), which cannot result in denial of substantive benefit of Notification 13/97. Learned Counsel further contends that the only provision in the 1996 Rules for recovery of excise duty is Rule 8 which will be attracted only in the event of non-use of the imported goods by the manufacturer for the intended purpose and in the present case, the goods imported were used for the intended purpose and, therefore, the Assistant Commissioner of Central Excise has no jurisdiction under Rule 8 to recover differential duty, and if the Revenue denied exemption at the initial stage for non-inclusion of the items in the Registratio....

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.... they were not eligible to the benefit of Notification. He, therefore, contends that the non-applying for registration and non-inclusion in Registration Certificate of these items is not merely a procedural failure as claimed by the appellants as registration is a mandatory requirement of the Notification. Lastly, he submits that Rule 8 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 has been invoked in this case by issue of notice by the Assistant Commissioner of Central Excise, since the goods imported (disputed items) were not used for the intended purpose viz. as parts for the manufacture of Cathode Ray Tubes as declared. He, therefore, supports the duty demand. 4. We have ....