TaxTMI 
TaxTMI 
2026 (4) TMI 447
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....iapers falling under the Tariff Heading 9619. For this purpose, it imports super absorbent polymers falling under Customs Tariff Item [CTI] 3906 90 90 and untreated fluff pulp falling under CTI 4703 21 00. Both these goods were imported by the appellant during the relevant period claiming concessional rate of duty under Notification No. 50/2017-Cus dated 30.06.2017, as amended. To avail concessional rate of duty under this exemption notification, the importer had to follow the procedure prescribed under "Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017" [IGCR Rules]. These rules apply to importers who wish to import goods for use for specified purposes under any exemption notification which is available if these rules are followed. According to the appellant, it had followed these rules and availed the benefit of the Exemption Notification. According to the department, the appellant had not followed the procedure prescribed under IGCR rules and, therefore, was not entitled to the benefit of the exemption notification and differential duty must be paid. In particular, the allegation is that the appellant had violated rule 5 and rule 6 of IGCR Rules. These Rules rea....
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.... exemption notification to the importer who intends to avail the benefit of exemption notification." Rule - 6. Importer to give information regarding receipt of imported goods and maintain records. (1) The importer shall provide information of the receipt of the imported goods in the premises, where the imported goods shall be put to use for manufacture of goods or job work or for rendering output service within two days (excluding holidays, if any) of such receipt to the Jurisdictional Customs Officer. (2) The importer shall maintain an account in such manner to clearly indicate the quantity,- i. and value of goods imported; ii. of imported goods consumed; iii. of goods sent for job work, nature of job work carried out; iv. of goods received after job work; v. of goods re-exported, if any, under rule 7; and vi. remaining in stock, according to bills of entry, and shall produce the said account as and when required by the Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs having jurisdiction over the premises or where the imported goods shall be put to use for....
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....appellant proposing to recover the differential duty with interest and to impose penalties under section 114A of the Act. 7. These proposals were resisted by the appellant but the Commissioner confirmed these proposals in the impugned order. The operative part of the Commissioner's order is as follows: ORDER (i) The demand of total duty amounting to Rs.1,06,28,551/- (Rupees One Crore Six Lakhs Twenty Eight Thousand Five Hundred and Fifty One only) (Rs.61,81,024/- on import Super Absorbent Polymer + Rs.44,47,527/- on import of Untreated Fluff Pulp = Rs.1,06,28,551/- (including IGST) is confirmed and ordered to be recovered from Noticee under the provisions of Section 28(4) of the Customs Act, 1962 read with Section 5 of IGST Act, 2017: the (ii) I order for recovery of interest on the above confirmed demand of duty under the provisions of Section 28AA of Customs Act, 1962; (iii) I impose a penalty of Rs. Rs. 1,06,28,551/- (Rupees One Crore Six Lakhs Twenty Eight Thousand Five Hundred and Fifty One only) under the provisions of Section 114A of the Customs Act, 1962, upon Noticee. 37. This order is issued without prejudice to any other action t....
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....and, thereafter, duty and interest, if any, is recoverable under Rule 8 of the IGC Rules only if goods were not used as per declaration or were not exported and were also not cleared under Rule 7. Therefore, section 28(4) of the Act will not apply to this case. (xiii) The demand is time barred as show cause notice was issued on 11.01.2023 beyond the normal period of limitation and there was no suppression of facts and all relevant information was provided by the appellant. (xiv) For this reason penalty is imposable on the appellant under section 114A. Submissions of the Revenue 9. Learned authorized representative for the Revenue vehemently supported the impugned order and submitted as follows: (i) Non compliance of Rule 5 of the IGCR Rules is established. This rule requires prior intimation of the estimated quantity and value of the imports to the jurisdictional Assistant Commissioner along with an continuity bond. The appellant filed applications on 13.02.2018, 24.09.2018 and 20.12.2019 for imports up to 850 MT of super absorbent polymers and 145 MT of Fluff Pulp. The actual imports exceeded these limits and were 2742 MT of SAP and 4343 MT of Fluf....
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....ssional duty under the exemption on the strength of application received from the jurisdictional Assistant Commissioner. The jurisdictional Assistant Commissioner, in turn, ensures that the goods are used. For this purpose, a bond as executed with him. 13. Rule 8 of IGCR Rules provides for recovery of duty if the importer fails to use the goods for the purpose indicated. In this case, there is no dispute that the goods were used for the purpose for which they were imported. 14. The only case of the department is that the appellant had imported goods in excess of the declarations made before the jurisdictional Assistant Commissioner of Deputy Commissioner. This is not possible. The Assistant Commissioner or Deputy Commissioner of customs at the port of import will not release the goods unless the appropriate amount of duty is paid. In case a notification is availed and the condition of the Notification is that the IGCR Rules have to be followed, the Assistant Commissioner or Deputy Commissioner at the port of import will only allow clearance of the goods on the strength of a copy of the declaration received from the jurisdictional Assistant Commissioner of Deputy Commissioner.....