ORDER
G.N. Srinivasan, Member (J)
1. Today stay application was posted for hearing. Since the appeal lie in a narrow compass, we have taken up the appeal for disposal after waiving redeposit.
2. Appellant was issued with licence under Paragraph 56 of the EXIM Policy AM 92-97 with export obligation condition it is mentioned as Special Import Licence quantity base. They had imported goods Cold Rolled Steel Sheets and they claimed exemption under Notification No. 260/92. In this case a show cause notice dt. 31.12.98 has been issued that the notice had imported under advance licence and had availed duty free clearance under Notification No. 203/92-Cus. In spite of this the impugned order has been passed by the Commissioner of Customs (Export) Mumbai, who imposed a penalty of Rs.95,000/-. We have heard both sides. We find that the licence as stated above has been issued not under Paragraph 49 of the EXIM Policy but under paragraph 56 of the EXIM Policy. The relevant Notification under which benefit was claimed his Notification No. 260/92 this is revealed in bill in entry. When these are the facts we do not understand how the department could state in a show cause notice dt. 31.12.98 that the appellant has claimed benefit of Notification No. 203/92. We therefore find that there is no basis on which the show cause notice could have been issued in this case. More-over benefit of Notification No. 203/92 was never claimed at the time of filing of Bill of Entry by the importer. When such is the state of affairs the impugned order is not based on any legal grounds and have it is set aside. Appeal stands allowed.
(Pronounced in Court)