ANTARCTICA LTD. Vs. COMMISSIONER OF CUSTOMS, CALCUTTA

JUDGEMENT

(1.) IN the present stay application listed as SP 37/2000, M/s. Antartica Limited, (previously known as M/s. Antarctica Graphics Ltd.), has prayed for dispensing with the pre -deposit of duty amount of Rs. 6,38,85,466 for hearing their appeal (bearing Nos. C -14/2000) against the order -in -appeal dated 30 -8 -1999 passed by the Commissioner of Customs (Appeals), Calcutta.

(2.) THE applicants had imported/indigeneously purchased capital goods - off -set printing press, spares, components, raw materials etc. under exemption available to the units in the Falta Export Processing Zone, for manufacture of printed packaging materials. The exemption from payment of customs duty/central excise duties was available subject to the specified conditions as given in the relevant exemption Notifications No. 133/94 -Cus., dated 22 -6 -1994 (as amended) and Notification No. 126/94 -C.E., dated 2 -9 -1994 (as amended). The customs/excise duties so exempted in respect of the above mentioned capital goods - raw materials etc. came to Rs. 6,38,86,466 for whose payment the applicants had bound themselves to the customs authorities in case the terms of the relevant notifications/provisions of the law were not fulfilled by them. On 11 -1 -1996, the appellants unit in the Export Processing Zone caught fire and it was claimed that the goods imported/indigeneously procured valued about Rs. 16.48 Crore had been destroyed. The appellants realised a sum of about Rs. 12.57 crore from the Insurance Company and settled their loan taken from the creditors/financial institutions etc.

(3.) A show cause notice was issued on 15 -6 -1993 wherein the appellants had been called upon to show cause why they should not pay Rs. 6,38,86,466 in terms of Section 28 read with Section 72 of the Customs Act, 1962 and Section 11 A of the Central Excises Act, 1944. The demand was confirmed by the Asstt. Commissioner of Customs whose order was confirmed by the Commissioner of Customs (Appeals). The appellate authority observed that since the goods in respect of which the appellants had executed the bond were not utilised for the purpose of production of export goods, the duties of customs and central excise were required to be paid. He held that the Asstt. Collector of Customs posted in the Export Processing Zone was the proper officer for such proceedings and he was empowered to exercise the powers both under the Customs Act, 1962 and the Central Excises Act, 1944.