M.M.T.C. LIMITED Vs. MUKTA SONS

JUDGEMENT

(1.) Plaintiff M.M.T.C. Ltd. was nominated as an agent by the Ministry of Commerce, Central Government for import of gold of 0.995 fineness as per the Export Import Policy 1992-97 (hereinafter referred to as the EXIM Policy). Under the notifications dated 16.9.1992 no.273/92-Cus dated 28.6.1993 no.143/93-Cus there was no customs duty if gold jewellery is exported within 120 day from the date of the drawl of the gold. Further, the export oriented jewellery manufacturers who draw gold from the nominated agency were required to export the manufactured jewellery articles within 120 day from the date of the said drawl of the gold.

(2.) Plaintiff delivered 3 kgs. of gold to the defendant on 3.6.1994 under contract no.L-963. This gold was duty free. Defendant was required to export the gold jewellery within 120 days i.e. by 27.10.1994. He failed to do so. He thus became liable to pay customs duty and penalty.

(3.) Vide notice dated 29.12.1994 the office of the Collector of Customs raised a demand on the plaintiff for his failure to export the gold jewellery within the stipulated time.