{"id":49200,"date":"1989-12-12T00:00:00","date_gmt":"1989-12-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/t-i-diamond-chains-ltd-vs-collector-of-customs-on-12-december-1989"},"modified":"2015-09-21T15:15:56","modified_gmt":"2015-09-21T09:45:56","slug":"t-i-diamond-chains-ltd-vs-collector-of-customs-on-12-december-1989","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/t-i-diamond-chains-ltd-vs-collector-of-customs-on-12-december-1989","title":{"rendered":"T.I. Diamond Chains Ltd. vs Collector Of Customs on 12 December, 1989"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Delhi<\/div>\n<div class=\"doc_title\">T.I. Diamond Chains Ltd. vs Collector Of Customs on 12 December, 1989<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1990 (27) ECR 95 Tri Delhi<\/div>\n<div class=\"doc_bench\">Bench: J T P.C., S Peeran<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>S.L. Peeran, Member (J)<\/p>\n<p>1. In these three appeals, the appellants have sought for setting aside the orders-in-appeal passed by the Collector of Customs (Appeals) Madras. Since common question arise in all these appeals, they are disposed off by this common order.\n<\/p>\n<p>2. The facts of the case are that in Appeal No. 328\/84, the appellants had debonded 36 cases of cold rolled steel strips in coils, ex. s.s. ILIOS vide Bill of Entry No. D-113 dated 2.6.1981. The Customs Appraising Department has assessed the duty as applicable under Section 73(12) of the Customs Tariff i.e. 30% + 10% + Rs. 325\/- per Mt. tonne under CET 26AA. Later the Department has served a Demand notice for the payment of short-levy amount of Rs. 11,057\/- stating that the goods are liable to duty @ 40% plus 10%=C.V. @ Rs. 330\/- per Mt tonne +10% as the dimension conforms to Rod vide Section 73.06\/07 of the Customs Tariff.\n<\/p>\n<p>3. In Appeal No. 329\/84, the appellants had debonded 17 cases of cold rolled steel strips in coils in ex. s.s. &#8216;ILIOS&#8217; vide Bill of Entry No. D-1320 dt. 24.6.1981. The Department had assessed the duty as applicable under Section 73(12) of the Customs Tariff i.e. @ 30%+ 10% plus Rs. 324\/-per Mt. tonne under CET 22 AA. Later the Department has issued a Demand notice for payment of short levy amount of Rs. 4594\/- stating that the goods are liable to duty @ 40% plus 10% plus C.V. @ Rs. 330\/- per Mt. tonne plus 10% as the dimension conforms to Rod vide Section 73.10 of the Customs Tariff.\n<\/p>\n<p>4. In Appeal No. 1767\/83, the appellants had imported 4 cases of cold rolled steel strips in coils ex s.s. &#8216;VISHVA MAYA from M\/s. Newman Crosby Steel Inc. USA in the grade of 8615 (Alloy steel). The Department assessed the duty as applicable under Section 73(12) of the Customs Tariff i.e. @ 30% plus 5%. As the material pertains to Alloy steel chargeable under Section 73(15) of the Customs Tariff i.e. @ 60% plus 15%, the Department had found the mistake and served a Demand notice for the payment of short-levy amount of Rs. 21,878.80 P.\n<\/p>\n<p>5 The appellants were served with show cause notices under Section 28(1) of the Customs Act, 1962 (hereinafter referred to as the Act) within six months of the date of Bill of entry. The appellants did not question the re-classification but have only submitted that the Department cannot re-classify the goods, as there is no suppression, This is not a case of short-levy or non-levy. Once the assessment has been finalised, the Department cannot re-open the assessment through a re-classification, as Section 28(1) is not attracted in their case That Section 28 is attracted only in cases where the assessment has not become final and also if there is non-levy, short-levy. Both the authorities below had rejected the contentions of the appellants.\n<\/p>\n<p>6. Shri Madhav Rao, Advocate appearing for the appellants, submitted that once the assessment had been completed, the Department will not get any rower to re-open the issue by invoking Section 28 which is available only in cases of non-levy and short-levy. The Department can also invoke Section 28 only if new facts arise and if the party have committed suppression while presenting the Bill of entry. He has forwarded a case that the Department can only file an appeal against the finalisation of the assessment and it is not open for the Asstt. Collector to issue show cause notice as in the above three appeals, there have been no suppression nor short-levy. He has relied upon 1981 ELT 328 : 1981 ECR 333D Para 15 and 1982 ELT 43 : 1980 ECR 570D Paras 8-11.\n<\/p>\n<p>7. Shri M.S. Arora, Departmental Representative countered the argument and submitted that the show cause notice had been issued within six months and Section 28 gave enough scone for recovery of any short-levy, in the present case, there was a short-levy and the Department, therefore, issued a show cause notice under Section 28 and it recovered the amount. The appellants had not questioned the import of the goods and as such, the authorities were justified in rejecting the contentions of the appellants. He further submitted that Section 28 was para-material with Section 11A of the Central Excises and Salt Act and prayed for upholding the order. He further relied upon the citations namely&#8211;\n<\/p>\n<p>Works of Art (Pvt.) Ltd. v. Union of India and Ors.\n<\/p>\n<p>Fram &amp; Co. v. Collector of Central Excise, Bombay <\/p>\n<p>I.T.C. Ltd. and Anr. v. Union of India and Ors.\n<\/p>\n<p>Nichani Sham Sunder <\/p>\n<p>8. We have heard the arguments of both the sides, perused the records and the citations in this case, It is well settled that Section 28 is analogous) to the Section 11A of the Central Excise Act. In the case of international Computers Manufacturers Ltd. and Anr. v. Union of India and Ors. 1981 ELT 632 Delhi : 1981 ECR 403D. the Delhi High Court has observed that Section 28 is analogous to Section 11A of the Central Excise Act. The authorities in this case have issued a show cause notice within six months as provided under Sub-section (1) of Section 28 of the Act. This view has also been taken by the Tribunal in the case of Vikas Watch Manufacturing Indus-tries v. Collector of Central Excise 1984 18 ELT 20 : 1984 ECR 1453 (Cegat) The same is the view in the case of Collector of Customs Cochin v. Appollo Tyres . We have also perused the other authorities referred to by Advocate and the Sr. Departmental Representative which are not directly on the point. We find that, there is no merit in this appeal and the order passed by the lower authorities is correct. Therefore, the appeals are dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Delhi T.I. Diamond Chains Ltd. vs Collector Of Customs on 12 December, 1989 Equivalent citations: 1990 (27) ECR 95 Tri Delhi Bench: J T P.C., S Peeran ORDER S.L. Peeran, Member (J) 1. In these three appeals, the appellants have sought for setting aside the orders-in-appeal passed by the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,33],"tags":[],"class_list":["post-49200","post","type-post","status-publish","format-standard","hentry","category-customs-excise-and-gold-tribunal-delhi","category-tribunal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T.I. 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