Case Law Details
C.C.E. & S.T. Vs Modest Infrastructure Ltd (CESTAT Ahmedabad)
Whether the duty free material found during the search of the premises of M/s Modest at Warehouse- 2 can be considered as lying outside the bonded warehouse and registered premises of M/s Modest, consequently liable for payment of custom duty as proposed in the show cause notice or otherwise.
In the present matter controversy arise due to the place where the disputed goods were found lying in Warehouse -2, located in the additional land of 17,415 Sq. Mtr. which has been alleged to be not a part of registered and bonded premises. The case of the department is that, since the goods were found in Warehouse -2, the said re-warehoused goods were removed illegally from PBW of Respondent since the said warehouse -2 was located in the additional land of 17,415, Sq. Mtrs.
The revenue contended that respondent’s application dated 06.02.2009 did not have any request for extension of the PBW and no mention of PBW was made in the said application. Thus, the permission by the Jurisdictional Central Excise officers was not for extension of the area approved under Section 58 and 65 of the Customs Act, 1962. In this regard we find that in the said application M/s Modest has submitted revised ground plan showing entire ship yard with a request for approval and granting necessary permission. It is on record that verification of the said premises carried out by the Jurisdictional Central Excise Officers on 17.06.2009 and Respondent’s request for approval and granting necessary permission was considered and accepted by the Deputy Commissioner on 03.07.2009, and the intimation letter dated 04.03.2010 mentioning that necessary permission is granted for use of additional land and revised Ground plan showing entire Ship Yard was approved by the authority. The said facts clearly leads to conclude that permission was indeed granted for the additional land even though the specific sections were not specifically mentioned therein.
We also gone through the letter F.No. VIII/48-60/CUS-T/PWB License/ 2005-06 Pt. I dtd. 20.10.2010 of the Assistant Commissioner of Central Excise, City Division, Bhavnagar issued to Respondent which clearly state that Warehouse -2 situated on the additional land of 17,415 sq. mtr. stands included in the PWB of respondent with effect from 06.02.2009 under Section 58 of the Customs Act 1962. Since the disputed goods were found within the registered and bonded PBW on the date of search, Ld. Commissioner correctly dropped the demand.
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