Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Laws/2010-11/1020

The jurisdiction over 100% EOU is of territorial officers and not of custom officer where the goods are imported. Secondly, for allowing an appeal, the principle of natural justice should be followed.
Case: Noel Agritech Ltd v/s Commissioner of Customs, Bangalore
 
Citation: 2001 (128) ELT 0227 (Tri. - Chennai)
 
Issue:- The jurisdiction over 100% EOU is of territorial officers and not of custom officer where the goods are imported. Secondly, for allowing an appeal, the principle of natural justice should be followed.
 
Brief Facts:- Appellants are 100% EOU and were engaged in the export of cut fresh flowers to various destinations abroad. They sought permission to make clearances to Domestic Tariff Area (DTA) from the concerned Jurisdictional Development Commissioner, which was granted.
 
It was alleged that the appellant had made such clearances without following the prescribed procedure.
 
Appellants contended that they approached the Customs Authorities at Mangalore port where the capital goods viz. machinery was imported for installation in their 100% EOU premises at Mangalore which is away from the Mangalore port town area. Since the Customs House did not indicate to them as to what procedure and documentation was required, clearances were effected and in any case cut fresh flowers were not chargeable to any duty in the Central Excise Law and therefore there was no question of a levy of customs duty under Section 3A for the cut fresh flowers removed into the DTA.
 
The Original Authority confirmed the demand. In appeal, the Commissioner (Appeals) dismissed the stay applications & appeals. Later on in two cases without hearing and in the third case hearing was granted and appeal was dismissed for non-compliance of the pre-deposit amount. Hence, appellants are before the Tribunal. Stay applications are also filed.
 
Appellant’s Contentions:- Appellants relied on the judgment of Larger Bench in the case of Ferrous Alloys Corporation Ltd [1995 (077) ELT 31] and submitted that the jurisdiction over an Export Oriented Unit was the jurisdiction of the territorial officers where the unit was situated and not the Customs House from where the capital goods were imported and final goods were exported.
 
Respondent’s Contention:- Revenue submitted that there is a Special Officer appointed as Asst. Commissioner of Customs in charge of EOU in that area who is the competent officer having jurisdiction in this case and therefore the orders have been decided and determined by the jurisdictional officer. The Commissioner (Appeals) has the designation of Commissioner of Central Excise & Customs (Appeals), Bangalore who has jurisdiction over the entire State of Karnataka where the appellants unit fall and therefore there is no apparent conflict of jurisdiction. Respondent submitted that there was no ground for staying the pre-deposit.
 
Reasoning of Judgment:- The Tribunal held that there is no duty on removals to DTA under the Central Excise & Salt Act, 1944 which is applicable only to such goods which are permitted to be sold in the DTA. Reliance was placed on the case of Siv Industries Ltd [2000 (017) ELT 0281 (S.C.)] wherein it was held that Central Excise levy is only on goods permitted to be sold; for contravention of the procedural irregularities. Chapter VA of the Central Excise Rules prescribes the procedure to be followed and consequential action under the rules could be invoked.
 
It was held that in the present case duty, penalties & Cess have been invoked under the provisions of Customs Act under Section 28 for duty, Section 112 for penalty. Since flowers have been grown in India and removed from the premises within India to a premises in India, it is not clear as to how customs duty would be applicable.
 
Further, it was held that since principles of natural justice have been grossly violated in the decision of the Commissioner (Appeals), inasmuch as they have not determined the amounts of pre-deposit and the matter on merits in two cases and in the third case they have summarily rejected the material and the grounds on pre-deposit of duty, it is fit case for de novo consideration by the lower authorities.
 
Impugned order set aside. Matter remanded for re-determination of duty, if any, as per law.
 
Decision:- Appeal disposed off.
 
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com