CIPLA LTD. Vs. COMMISSIONER OF CUSTOMS (IMPORT)

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellants being aggrieved by the impugned Order passed by the Commissioner of Customs (Appeals), filed the present appeal. The appellants are one of the largest pharmaceutical manufacturing companies in India. They manufacture drugs/medicines and export them to various foreign countries and they also manufacture goods which are cleared for domestic consumption. The Import and Export Policy provides for duty free import for the purposes of re -export i.e. the goods can be imported from abroad and can be re -exported back, out of the country, in the same condition. The goods which are imported in such circumstances are to be stored in a Custom bonded warehouse and thereafter as and when the appellant company procures an export order, the goods are allowed to be removed from the warehouse and exported out of India against realization of foreign exchange. In the course of such a normal business transaction, it is a common practice that sometimes, foreign buyers either revoke the orders or delay the opening of letters of credit and on such occasions, the goods sometimes remain in the warehouse beyond one year. The appellants applications for extension of the 4 bonds on 04.08.03, 28.08.03, 28.08.03 and 20.10.03 within the validity period of the bonds, were rejected by the department. The appellants further submits that the Drug Controller vide Order dated 24.9.2001 gave NOC for destruction of the expired goods covered by the aforesaid bonds. The applicants thereupon relinquished their title to the goods covered by the 4 Bonds vide their applications for relinquishment on 29.09.04, 17.12.04, 17.12.04 and 17.12.04 respectively.

(3.) THE Asst. Commissioner of Customs, Bond Department, New Customs House, Mumbai - 01 passed order dated 12.08.05 rejecting the appellants applications for relinquishing title under the provisions of the Customs Act and asked the appellants to pay duty and interest applicable Under Section 72(1) and 62(2) respectively in respect of the subject bonds. Being aggrieved by the Asst. Commissioner (Bonds) Order the appellants filed an appeal before the Commissioner of Customs (Appeals), Mumbai. The Commissioner (Appeals) relying on the Apex Court judgment in the case of Kesoram Rayon v. Collector of Customs, Kolkata as had rejected their appeal without considering their submissions. Hence this appeal.