COMMISSIONER OF CUSTOMS, CHENNAI Vs. ASHOK ENTERPRISES

JUDGEMENT

(1.) THIS civil miscellaneous appeal at the instance of the Commissioner of Customs, Chennai, challenges the Final Order dated 24 November, 2004 (2005 (186) E.L.T. 497 (Tribunal)) on the file of Customs, Excise and Service Tax Appellate Tribunal, South Zonal Branch at Chennai, setting aside the order denying the benefits of Customs Notification to the respondent and imposing duty on S.S. Coils/Sheets imported under Advance License Scheme.

(2.) WHILE so, the Directorate of Revenue Intelligence received intelligence input regarding the misuse of advance licenses by the importers and contravention of the Customs Notification by diverting the duty free imported raw materials instead of utilizing the same for manufacture of resultant export products.

(3.) THE Commissioner of Customs evaluated the materials collected by the Department and arrived at a factual finding that the assessee had misused the Advance Licenses and as such, they are not entitled to the benefits of the relevant Customs Notification. The Commissioner while arriving at such a finding considered the proceedings initiated by the Joint Director General of Foreign Trade and the final order passed by the said authority dropping further proceedings against the assessee. According to the Commissioner, the findings recorded by the Director General of Foreign Trade has nothing to do with the proceedings initiated by the Customs Department and as such, there is nothing wrong in passing an independent order by the Department. Accordingly, the Commissioner, denied the benefits of Customs Notifications Nos. 30/97, dated 1 April, 1997 and 48/99, dated 29 April, 1999 for the entire import of S.S. Sheets/Coils imported duty free, availing four advance licenses. The Commissioner demanded duty on the said import besides interest and penalty.