CA Urvashi Porwal
Brief of the Case
In the case of The Commissioner of Central Excise Vs. M/s. Super Spinning Mills Ltd., it was held that non-mentioning of Section 72 of the Customs Act, 1962 along with Section 28 of the Customs Act, 1962 would render the Show-Cause Notice outside the purview of Section 72. Wrong mention of provision of law in the show cause notice is sufficient to invalidate the exercise of that power, when the power exercised is available under a different provision.
Facts of the Case
The respondent/assessee is a 100% Export Oriented Undertaking and holders of Central Excise Registration and Customs Licence for undertaking manufacturing activity under bond. The assessee is engaged in the manufacture of cotton yarn falling under Chapter Heading 52.05 of the Schedule to both Central Excise Tariff Act, 1985 and Customs Tariff Act, 1975 and procure raw materials viz., cotton indigenously and also through imports. They were exporting cotton yarn as well as clearing under DTA sales in the domestic market. The assessee had imported cotton from various countries without payment of Customs Duty claiming exemption under Notification No.53/97 (Cus) dated 3.6.97 as amended for use in the manufacture of cotton yarn. One of the conditions stipulated in the said Notification was that the imports, clearance, export, transfer and usage of goods and goods manufactured there from and the net foreign exchange earnings as a percentage of export shall be subject to the conditions of Export and import policy for 1st April 1997 to 31st March 2002 notified by the Government of India under the Ministry of Commerce Notification No.1/97 dated 31.3.1997. The norms were fixed for waste and scraps, fixed for an export product by an Export Oriented Unit as per Sl.No.100 of Appendix 41 of Hand Book of Procedures, EXIM Policy 1997-02 vide Public Notice No.34(RE-01)/97-02 effective from 1.12.1999 in the following manner:
