BHARATI TELECOM. LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal arises from the order passed by the Commissioner of Customs, Nhava Sheva dated 7 -5 -99 confirming duty liability on the appellants to the tune of Rs. 52,41,600.00 and demanding interest at the rate of 24% per annum under Section [28AA] of the Customs Act, 1962 and penalty of equal amount of duty under Section 114A of the Customs Act, 1962.

(2.) THE matter relates to import of various consignments by the appellants under the Advance Licence Scheme and duty free clearances of imimported goods under Notification No. 203/92 -Cus. dated 19 -5 -92.

(3.) BRIEF facts are : Appellants imported polypropylene under the Advance Licence Scheme and availed of duty free clearance of the goods claiming exemption under Notification No. 203/92. They had also taken Modvat credit on the inputs under Rule 56/57A of the Central Excise Rules. The Department alleged that the appellants were not entitled to the benefit of duty free imports under the notification since condition (V)(a) of the notification provided that the export obligation should have been discharged by exporting the goods manufactured in India and in respect of which no credit at inputs stage is availed of under Rule 56A/57A. The Department also alleged the violation of provisions of Para 12 of the Hand Book Procedures of EXIM Policy - 1992 -1997. By Show Cause Notice dated 3 -9 -97, the Department also alleged that the appellants had suppressed the fact that Modvat credit had been availed of on the inputs used in the manufacture of exported goods for wrongly availing duty free benefits against the licence.