ORISON COMMERX (P) LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This application has arisen in an appeal filed by the applicants against the decision of the adjudicating and first appellate authorities confirming a demand of Customs duty of Rs. 1,50,747/ - against them and imposing on them a penalty of Rs. 10,000/ -. The applicants pray for waiver of pre -deposit of the duty and penalty amounts and for stay of recovery thereof, pending the appeal.

(2.) Examined the records. The applicants are manufacturers and exporters of quality leather garments. They export their entire production, for which they have an Export House status conferred by the DGFT. They used to import printed poly bags duty free under exemption Notification and consume the same for packing leather garments and then export such garments under a re -export bond executed in respect of the poly bags. As per the bond, the applicants were liable to export the poly bags within a period of six months from the date of importation thereof. The duty of over Rs. 1.5 lakhs confirmed against the applicants by the authorities below is on a consignment of printed poly bags imported from Hong Kong and cleared at Customs on 24 -4 -2000 under Bill of Entry No. 893939, dated 22 -4 -2000, free of duty under exemption Notification 16/2000 -Cus., dated 1 -3 -2000. In the bond executed by the applicants in connection with such clearance, they had undertaken to re -export the goods within six months from the date of import. Both the authorities below found that the applicants failed to re -export the poly bags within six months as undertaken and, accordingly, on the ground of violation of the condition of re -export, confirmed demand of duty against the applicants as above. They also imposed a penalty of Rs. 10,000/ - under Section 114A of the Customs Act. Hence the appeal and the present application.

(3.) Heard both sides.