2005 (4) TMI 228

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....appeal is against the Order-in-Appeal No. 106/02-Cus., dated 15-11-2002 passed by the Commissioner of Customs & Central Excise (Appeals), Bangalore. 2. The appellants are 100% E.O.U. manufacturing 'GHERKINS' for export. The processed 'GHERKINS' are packed in drums along with vinegar. The vinegar is imported duty free in terms of Customs Notification No. 53/97-Cus., dated 3-6-1997. In the course....

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....emand of duty under Section 72 of the Customs Act. None of the situation mentioned in Section 72 has arisen in this case for demand of duty. (3)        The appellants followed all the procedures and the accident happened after the export order was given. In other words, when the order for export clearance has already been given by the proper officer, it cannot....

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....der Section 64 as samples without payment of duty; (d)        where any goods in respect of which a bond has been executed under [Section 59] and which have not been cleared for home consumption or exportation are not duly accounted for to the satisfaction of the proper officer, the proper officer may demand, and the owner of such goods shall forthwith pay,....

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....not duly accounted for to the satisfaction of the proper officer. On a careful reading of the said Section, it shows that it is applicable only to the goods which are imported and warehoused. In this case, the goods are manufactured in 100% E.O.U. out of the imported goods. Therefore, the Section itself has no direct application to the finished goods manufactured in 100% E.O.U. Hence no duty can b....