COMMISSIONER OF CUSTOMS Vs. SRINAR ELECTRONICS (P) LTD.

JUDGEMENT

(1.) M /s. Srinar Electronics Pvt. Ltd had exported connectors and then re -imported them under Notification No. 158/95 -Cus dated 14.11.1995 for the purpose of repair and return. The goods were cleared on execution of end -use -bond under Serial No. 2 at the time of import. According to the notification, the exported goods should be re -exported within one year and imported goods should be re -imported within six months from the date of import and the importer should execute a bond with necessary bank guarantee. Since the goods were not re -exported within a period of one year, a Show Cause Notice dated 9.7.2002 was issued for recovery of an amount of Rs. 26,91,179/ - in terms of the conditions of the bonds executed. Some of the goods were re -exported within six months period, the demand on the remaining quantity was confirmed. Rs. 7,53,858/ - was the differential duty confirmed in terms of Sl. No. 2(d) of Notification No. 158/95 -Cus. Before the Commissioner (Appeals) the assessee raised the plea that they are eligible to the benefit of Notification No. 94/96 -Cus dated 16.12.96 which was extended by the lower appellate authority relying upon the decision of the Tribunal in Indian Rayon and Industries v. CC, Calcutta, 2002 (45) ELT 575 (Tri. Kolkata). Hence this appeal filed by the Revenue.

(2.) Heard both sides.

(3.) On the other hand, ld. Counsel for the importers submits that the judgment of the apex Court is distinguishable as the issue therein was whether to the benefit of notification No. 94/96 -Cus was available to the importer under the Deec scheme, while the goods imported by the respondents herein were under bond without payment of central excise duty, covered by Sl. No. 1(d) of Notification No. 94/96 -cus. He therefore prays that the Commissioner (Appeals) order extending such benefit may be upheld and the Revenue appeal be dismissed.