TaxTMI 
TaxTMI 
2026 (9) TMI 964
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....toms Act, 1962. 2. The brief facts are the Appellant had imported various items and were kept in a Public Bonded warehouse. The appellant executed warehousing bonds for the consignments imported and warehoused in the Public Bonded Warehouse. Since the bond period of the bonded goods have expired, proceedings were initiated by issuing show cause notices (SCNs) dated 13.07.2021 and 10.08.2020. Thereafter Adjudication Authority as per the Order-in-Original dated 31.01.2022 confirmed the demand of duty as applicable with interest and also held that the goods are liable for confiscation. The Adjudication Authority allowed the Appellant to redeem the goods on payment of redemption fine of Rs.35,00,000/- and also imposed penalty of Rs. 1,50,000....
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.... orders. In these circumstances, the appellant has no option but to approach the Hon'ble CESTAT seeking to set aside the Order-in-Original dated 31.01.2022 and Order-in-Appeal dated 14.06.2023 to the extent they uphold confiscation and imposition of redemption fine and penalty, and to hold that the liability is limited only to duty and interest. 4. Learned Counsel further submits that there is an inordinate delay in issuing the show cause notice. Learned Counsel submitted that the appellant had imported steel grits, epoxy resins, saw blades, and other allied products, which were warehoused at Public Bonded warehouse at ICD Whitefield, Bengaluru under multiple warehousing bonds executed between 2008 and 2019. Under Section 61 of the C....
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....stances beyond its control. These circumstances include the technological obsolescence of the imported products, the severe impact of the COVID-19 pandemic on demand and labour availability, and the financial hardship faced by a small enterprise operating with borrowed funds. The confiscation of the impugned goods, and imposition of redemption fine, and penalty in such a situation is inequitable and disproportionate. 7. The learned Counsel also submits that clearance of goods is not merely a statutory obligation but also a commercial decision. The Customs Act does not intend to penalize bonafide importers who are victims of market forces beyond their control. When the market for the goods ceases to exist, clearance becomes impossible in ....
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....tation w.e.f. 15.03.2020 until further orders. On 08.03.2021, the Court recalled the extension but excluded the entire period from 15.03.2020 to 14.03.2021. On 27.04.2021, in view of the second wave, the Court restored the extension, excluding limitation from 14.03.2021 onwards. On 23.09.2021, the Court clarified that limitation stood excluded from 15.03.2020 to 02.10.2021. Finally, on 10.01.2022, the Court excluded limitation from 15.03.2020 to 28.02.2022, granting a minimum grace period of 90 days from 01.03.2022. This sequence of rulings clearly establishes that the period between 15.03.2020 and 28.02.2022 stood excluded for all proceedings, including quasi-judicial customs matters. Accordingly, although the bond technically expired on 0....