ABG SHIPYARD LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner is a company engaged in manufacturing ships. We are informed that such ships would be supplied to Government of India. For the manufacturing activity, petitioner imports various sophisticated machinery, which is warehoused during the course of its manufacturing activity. Case of the petitioner is that it is not possible to complete manufacturing of a ship in couple of years and usually takes longer time, during which the goods remained warehoused. Petitioner, therefore, had applied to the Customs authorities for extension period of warehousing of goods. Such application dated 15-5-2013 has not yet been decided by the Chief Commissioner. In the meantime, Assistant Commissioner of Central Excise and Customs, Surat issued demand notices for recovery of customs duties with interests. First such notice was issued on 29-11-2013. However, in view of the pendency of the petitioners application for extension of warehouse period, there was no further progress in connection with such demand notice. Subsequently, further notice came to be issued on 4-2-2015, in which also, for similar reasons, there was no progress for some time.

(2.) Only recently, under communication dated 18-1-2016, the said authority has fixed personal hearing in connection with said demand Notices on 21-1-2016, despite the fact that till date, petitioners application for extension of time is not decided. Counsel for the petitioner submitted that in fact, in terms of Section 65 of the Customs Act, 1962, the petitioner is not even required to seek extension since the goods would not fall under Section 61 read with Sections 58 and 59 of the said Act. At any rate, when the request of the petitioner for extension of time is still pending, recovery of the duties would not be permissible. Counsel drew our attention to the circulars of C.B.E. & C. suggesting that in cases were the manufacture of goods is likely to take longer time, request of extension of time should be granted.

(3.) Issues require consideration.