ELECTRONIC RESEARCH LTD. Vs. COMMISSIONER OF CUSTOMS, CHENNAI

JUDGEMENT

(1.) BOTH these appeals raise common question of law and facts and arising from the same Order -in -Appeal No. 83 -84/2001, dated 13 -2 -2001. Hence, they are taken together for disposal as per law. The Commissioner in the impugned order has given the following findings : - The appellant has cited quite a few judgments to support his contention that Special Additional Duty is not leviable on the subject goods in view of the fact that the subject goods were warehoused before the levy was introduced and that in the light of various judgments, they are not liable to pay the SAD. However, as per the latest judgment of the Honble Supreme Court in the case of M/s Kiran Spinning Mills v. Collector of Customs reported in 1999 (113) E.L.T. 753 (S.C.), in respect of warehoused goods, the rate of duty which would be payable would be the rate on the date when goods are removed from the bonded warehouse. Therefore, in the instant case, SAD was payable on the date of clearance of the bonded goods. The lower authoritys order is therefore just and legal Accordingly, I reject the appeals.

(2.) WE have heard both sides in the matter.

(3.) LD . Advocate, Shri G. Sampath fairly conceded that the issue is no longer res integra and the matter is covered against the appellants in terms of the Larger Bench judgment of the Apex Court rendered in the case of LML Limited v. CCE, Kanpur [2002 (142) E.L.T. 273 (S.C.)]. The Apex Court has reiterated the findings expressed in their earlier judgment rendered in the case of Kiran Spinning Mills [1999 (113) E.L.T. 753 (S.C.)] referred to by the Commissioner in the impugned order. The Apex Court in Para 5 of the order has held that the taxable event occurs on the date of which the goods are cleared from a bonded warehouse for home consumption. It has been further held that it is that date which is relevant for the purpose of rate of custom duty and any additional duty thereon.