TaxTMI 
TaxTMI 
2026 (3) TMI 1541
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....ls of Entry (B/Es) and cleared the same from M/s. Arshiya International Ltd., a Free Trade Warehousing Zone (FTWZ). The appellants had undertaken the activity of packing of such bulk medicaments into the blister packaging in their factory, before being sold for human consumption. On importation of the subject goods, the appellants had claimed the exemption for payment of Additional Duty of Customs (SAD) in terms of Notification No. 45/2005- Customs dated 16.05.2005, as amended. The benefit of exemption under the said notification claimed by the appellants was denied by the department on the ground that the subject goods were stock transferred from the FTWZ and since the same were not sold on payment of VAT, the benefit provided thereunder s....
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....ase of M/s. CRI Limited Vs. Commr. Of Customs (Airport & Administration), Kolkata 2020 - (12) TMI 805 - CESTAT KOLKATA and M/s. Linc Pen & Plastics Ltd. Vs. Commissioner of Customs (Airport & Cargo Complex), Kolkata - 2025 (2) TMI 1293 - CESTAT KOLKATA. 2.2 Learned Advocate strenuously argued that the proceedings initiated by the department by invoking the extended period of limitation cannot be sustained inasmuch as there is no element of fraud, suppression, willful misstatement etc., with intent to avail the benefit of the SAD exemption provided under the notification dated 16.05.2005. To state that the proceedings initiated by the department are barred by limitation of time, learned Advocate has relied upon the Co-ordinate Bench Order....
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....ferred to their factory and in absence of any sale of the same on payment of appropriate Sales Tax/VAT, the benefit provided under the said notification dated 16.05.2005 should not be available. With regard to availment of the benefit of notification dated 16.05.2005, we are in agreement with the findings recorded in the impugned order that the condition precedent for availment of such benefit is sale of "such goods" on payment of Sales Tax/VAT. In the case in hand, since the appellants had stock transferred the goods from the FTWZ to their factory, without involving any element of sale, we are of the considered opinion that the benefit provided under notification dated 16.05.2005 should not be available. The facts involved in the orders of....
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....ns, it would transpire that issuance of SCN within the normal period of one year is the 'rule' and invocation of the extended period is the 'exception', for which it is incumbent on the department officer to substantiate that in fact, there are involvement of the ingredients such as collusion, willful mis-statement, suppression of facts etc., on the part of the importer in non-payment/short-payment of the duty amount. On perusal of the case records, we find that the appellants in their letter dated 28.11.2012 had filed the declarations before the customs officer having jurisdiction over the FTWZ, explaining their activities to be undertaken with regard to the bulk tablets imported by them. However, in the said letter, it had also been decla....