GRASIM INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS (IMPORT)

JUDGEMENT

(1.) HEARD both sides. The applicants filed these applications for waiver of pre -deposit of duty of Rs. 50,46,728/ - along with interests and penalties. The applicants made import of certain goods and claimed benefit of concessional rate of duty under Sr. No. 425 of Notification No. dated 1 -3 -2002. A show -cause notice was issued by the Commissioner of Customs (Import), Mumbai demanding duty on the ground that the applicants had not used the imported goods for specified purposes as provided in the Notification.

(2.) THE contention of the applicants is that in the present proceedings, the show -cause notice was issued by the Commissioner of Customs, whereas as per the provisions of Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 read with Condition No. 5 of the Notification No. , under which the goods were imported, only the jurisdictional Assistant Commissioner of Central Excise or Dy. Commissioner of Central Excise is empowered to issue show -cause notice for violation of the condition of Notification. In the present case, show -cause notice is issued by the Commissioner of Customs, which is not a competent authority under Rule 8 of the above mentioned Rules. Hence, the demand is not sustainable.