ELECTRONIC RESEARCH LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE short question arising for consideration in this appeal of the assessee is whether the assessee is liable to pay Special Additional Duty (SAD) under Section 3A of the Customs Tariff Act on the goods imported by them, warehoused prior to 2.6.98 and cleared from warehouse for home consumption after that date. Section 3A of the Customs Tariff Act came into force on 2.6.1998. The goods in question had been imported and warehoused prior to that date. In other words, when the into -bond Bills of Entry were filed, SAD was not leviable on the goods. When the ex -bond Bills of Entry were filed for clearance of the goods for home consumption, SAD was leviable. The question arose as to whether such duty was recoverable from the appellants with reference to the date of filing of the into -bond Bills of Entry. On this question, both the lower authorities held against the assessee. Hence the present appeal.

(2.) THERE is no representation for the appellants, who have waived their right to be heard and have requested the Bench to decide the case on merits without hearing them. Ld. SDR submits that the issue is already covered against the assessee by the apex Court's judgment in Kiran Spinning Mills v. CC . He has referred to para 6 of the cited judgment, which reads as under:

(3.) GOING by the above ruling of the apex Court, we find that, in the present case, the goods crossed customs barrier on the date of their clearance for home consumption under the ex -bond Bills of Entry. That event took place after 2.6.1998, the date on which SAD became leviable under Section 3A of the Customs Tariff Act. Therefore, the appellants are liable to pay the duty on the goods cleared from warehouse for home consumption.