COMMISSIONER OF CUSTOMS Vs. PSI DATA SYSTEMS LIMITED

JUDGEMENT

(1.) The Revenue has come up in this appeal following the order of the CESTAT in final Order No. 2198/2005 dated 9.12.2005. The appeal is admitted to consider the following substantial questions of law:

(2.) The assessee has imported memory chips vide Yellow Bill dated 22.3.1989. The goods were deposited at Central Warehousing Corporation, K.R. puram on 16.6.1999 under bond No. 55/1989 in terms of Section 59(1) of the Customs Act, 1962 (for short 'the Act') by executing necessary bonds. Within the time stipulated for removal of bonded goods, the respondent-assessee did not remove the goods from the warehouse. The time stipulated came to an end on 15.6.1990. Accordingly, the appellant-Revenue in terms of Section 61(1)(b) of the Customs Act treated the goods as 'improperly removed'. Under the circumstances, the show cause notice was issued on 2.12.1999 demanding the duty payable by the respondent and also to levy interest and penalty in accordance in law. Being aggrieved by the order passed by the authority, the assessee filed an appeal before the Commissioner of Customs (Appeals) which appeal came to be dismissed. As against the same, the assessee filed an appeal before the CESTAT which appeal came to be allowed by considering the proviso the Section 68 of the Act. It is also relevant to mention In the meanwhile the assessee has challenged the action of the appellant by filing the writ petition under Section 23(2) of the Act which also ended in vain. Challenging the order of the CESTAT, the Revenue has filed this appeal.

(3.) We have heard the learned Counsel for the parties.