CC Vs. ACHAL PAPER INDUSTRIES

JUDGEMENT

(1.) THIS appeal is filed by the Revenue against the Order -in -original passed by the Commissioner of Customs, Amritsar.

(2.) SHRI U. Raja Ram, learned JDR, appearing for the Revenue, pleaded that the respondents have imported 4 consignments of waste paper during the period from 1.3.2000 to 22.10.2001 and availed concessional rate of duty on the imported waste paper under Notification No. 16/2000 -Cus. dated 1.3.2000 and 17/2001 -Cus. dated 1.3.2001 on furnishing an undertaking that the imported goods will be used for manufacture of paper. The End Use certificates submitted by the importer in respect of disputed four bills of entry indicated that the waste paper was used for manufacture of board only. This was also confirmed by the central excise record that only paper board was manufactured and cleared and thus, the imported waste paper was not used for he intended purpose and the importer was called upon to pay the differential duty. However, show cause notice was dropped by the Commissioner on the ground that -Cus.(NT) dated 26.8.2002 was issued under Section 28A of the Customs Act, amending notification No. 16/2000 -Cus. and 17/2001 -Cus. retrospectively and ordered that the duty so leviable but not levied during the period from 1.3.2000 to 22.10.2001 on the said goods falling under heading 47.07 of the Customs Tariff Act, will not be required to be paid when used in the units manufacturing paper board.

(3.) IN their Cross -objections, the respondents had submitted that during the period from 1.3.2001 to 22.10.2001, all the imported goods were exempt from payment of surcharge under notification No. 26/2001 -Cus. dated 1.3.2001. During the material period, the bill of entry No. 291 dated 22.3.2001 was filed under OGL and the basic customs duty of Rs. 29,412/ - at the rate of 5% ad valorem under notification No. 17/2001 -Cus. dated 1.3.2001 (Serial No. 139 of the table) and the special additional duty of customs (SAD) of Rs. 24,706/ - at the rate of 4% was paid under TR -6 No. 440 dated 24.3.2001 in Punjab National Bank, Extension Counter, CFS Dhandari Kalan, Ludhiana. The other three bills of entry No. 376 dated 25.4.2001, 424 dated 4.5.2001 and 624 dated 4.6.2001 were filed against Duty Entitlement Pass Book (DEPB). The goods imported against DEPB licences were exempt from payment of special additional duty of customs (SAD) under notification No. 19/2001 - Customs dated 1.3.2001 (serial No. 45 of the table) during the relevant period. The fact of exemption from payment of special additional duty (SAD) of customs under notification No. 19/2001 -Customs dated 1.3.2001 was in the knowledge of customs as the said three bills of entry were filed by the respondents under the guidance of Customs House Agent mentioning therein that SAD was exempted under notification No. 19/2001 -Cus. dated 1.3.2001 and the goods were allowed to be cleared by customs accordingly after complete examination and study. It was also urged no behalf of the respondents that the demand is time barred as show cause notice was issued on 6.6.2001 after expiry of six months. It was also urged that with the issuance of -Cus. dated 26.8.2002, according to practice generally prevalent in the trade, the waste paper was also being allowed to be imported at concessional rate of duty if the same was used in the manufacture of paper board as well. Thus, there has been no mis -statement or suppression of facts or wrong declaration on the part of the respondents.