Case Law Details
Commissioner Of Customs Vs Baroda Rayons Corporation Ltd. (Gujarat High Court)
Gujarat High Court held that as the bonded period is expired, the importer is liable to pay the customs duty. Importer cannot re-export the goods under section 69 without payment of the customs duty.
Facts- The respondent is a public limited company engaged in a commercial production of Viscose Filament yarn. In the year 1995-96, the respondent imported plant and machinery – equipment under an Open General Licence (OGL) from Japan, Germany and Korea, after executing 21 bonds amounting to Rs.18,01,31,442/- and initially, it was stored at Bombay and later on shifted to the private bonded warehouse at Surat.
On the expiry of the warehousing period, the respondent sought an extension for six months on the ground of it was unable to clear the imported plants and machinery – equipment due to a financial crunch. When the 6th extension was sought from 01.01.1998 up to six months i.e. 30.06.1998, same was rejected and so also 6th, 7th, 8th, 9th and 10th extensions sought for.
On account of the equipment in the bonded warehouse not having been cleared after the expiry of the permitted extension warehousing period, the appellant was issued show cause notices, initially, 16 show cause notices resulting in 16 Orders in Original (For short ‘OIO’) came to be passed on 30.03.2001 which became the subject-matter of appeals which came to be adjudicated by the appellate authority and a common order dated 15.01.2001 came to be passed and rejected the same.
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