30/1997 Customs dated 01.04.1997 hereinafter referred as the said numberification by which the materials imported into India for the manufacturing of the pagers were exempted from whole of the customs duty leviable in the First Schedule of the Customs Tariff Act, 1975 and further whole of the additional duty leviable thereon under Section 3 of Customs Tariff Act, 1975.
At the stage of final hearing of the appeal, the assessee raised a preliminary objection companytending therein, that the order impugned before the High Court amongst other things, also relates to the rate of duty of customs and as such the appeal under Section 130 of the Customs Act was number tenable before the High Court and the appeal will have to be preferred before this Court under the provisions of Section 130E of the Customs Act.
A specific intelligence was received by the Director of Revenue Intelligence to the effect that the assessee had stopped manufacturing of pagers and hence a certain portion of the duty free material imported under the Scheme had been written off in their books of accounts.
The Division Bench of the High Court held that it was called upon to decide whether the terms and companyditions of the said numberification have been companyplied with by the assessee or number and whether the levy of duty, interest and penalty were legal or number and whether the CESTAT was justified in setting aside the levy of duty, interest and penalty and all these questions were related to determination of the rate of duty.
After following the procedure prescribed, the Commissioner of Customs passed an Order in Original on 30.04.2002 thereby, holding that the assessee was liable to pay the aforesaid amount of Rs.
Not satisfied with the companytention of the assessee, the Commissioner of Customs, Bangalore, issued a Notice to the assessee, calling upon it to show cause as to why the customs duty amounting to Rs.
As per the scheme framed under the said numberification, the goods imported under the actual user companydition were required to be used only for the manufacture of the declared final product.
The assessee submitted a list of such unutilized items with requisite details and sought for further time to link unutilized items to the bill of entry at the relevant assessable value.
Being aggrieved thereby, the Commissioner of Customs, Bangalore preferred an appeal before the Karnataka High Court under the provisions of Section 130 of the Customs Act.
10083/2011, inasmuch as the impugned judgment and order s in all other companynected appeals are passed following the judgment and order passed by the Karnataka High Court in CS TA No.
96,17,498/ along with interest at the rate of 24 per annum and the penalty should number be recovered from it.
It was further informed by the assessee that they have ceased to manufacture pagers and as such materials have become obsolete insofar as they are companycerned.
The assessee was called upon to submit the list of such unutilized items, which are imported under the said numberification and lying unutilized.
The assessee is entitled to the benefit of Notification No.
The officers of the DRI, therefore, took up further investigation in the matter.
The CESTAT allowed the appeal.
Being aggrieved thereby, the assessee preferred an appeal before the CESTAT.
The assessee is a leading manufacturer of pagers.
Being aggrieved thereby, the Revenue is in appeal before this Court.
2/2007.
96,17,498/ along with interest and penalty.
