RELIANCE INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS, RAJKOT

JUDGEMENT

(1.) THESE appeals are directed against the order -in -original No. 63 -64/Commissioner/2011, dated 25 -8 -2011. Since both the appeals are directed against very same order -in -original, they are being disposed of by a common order.

(2.) THE relevant facts that arise for consideration are that appellant herein being 100% EOU during the material period i.e. 1 -10 -2007 to 23 -10 -2007 had letter of permission from the Divisional Commissioner, Kandla Special Economic Zone, for manufacture and other operations in bonded warehouse, as per the provisions of Customs Act, 1962. The appellants were also registered with the jurisdictional Central Excise authorities. The appellant, as per letter of permission was licensed to manufacture Refined Petroleum Products, Liquids of Gaseous Fuels, Illuminating Oils or Grease or other products obtained from crude petroleum of their fractionation, production, liquefaction, petrochemical products and Polypropylene, Sulphur unrefined (by -product) and Petroleum Coke (residue). The appellant executed various bonds as required under the Customs Act for financing their unit as EOU and procured raw materials required for manufacturing of final products, as per the procurement certificates given to them by the lower authorities. Appellant procured various inputs without payment of customs duty and Central Excise duty, as per the provisions of Notification No. 52/2003 -Cus., dated 31 -3 -2003 and Notification No. 22/2003 -C.E., dated 1 -3 -2003 and availed the benefit of full exemption under the Notification No. 21/2002 -Cus., dated 1 -3 -2002 and Notification No. 4/2006 -C.E., dated 1 -3 -2006 for want of their final product i.e. Liquefied Petroleum Gas (Domestic) (hereinafter referred to as LGP). The lower authorities were of the view that the appellant having cleared LPG in the Domestic Tariff Area (DTA) without payment of duty, after having availed the benefit of Notification No. 21/2002 -Cus. and Notification No. 4/2006 -Central Excise were liable to pay duties forgone for the inputs which were used for manufacture of such LPG. The appellants were directed to show cause as to why the amounts paid by them as Customs duty and Central Excise duty should not be appropriated and penalties not to be imposed under the provisions of Customs Act, 1962 as well as Central Excise Act, 1944. The appellant contested the show cause notice before the adjudicating authority on merits of the case as well as on limitation. They filed a detailed reply and also sought for personal hearing. The adjudicating authority, after following the due process of law, passed following order : - A. Show cause notice No. V.JMR/AR -IV/Commr/13/2008, dated 8 -4 -2008

(3.) AGGRIEVED by the above said order, appellant is before us in these appeals. Learned counsel would contest the issue as under : -