Shri Lajja Ram - (1.) IN this appeal filed by M/s. INdia Charge Chrome Ltd., the matter relates to the duty liability on the goods imported rubber membrane two numbers which were subsequently found to be defective. The goods have been imported duty free for use in the 100% export oriented undertakings. When the goods were found defective the importer surrendered the same to the customs and deposited the gods back in the customs bonded warehouse. As the goods were not put to use for which they were imported, the Commissioner of Customs (Appeals) confirmed the view taken by the Asstt. Commissioner and confirmed the duty demand of Rs. 26,738/- and penalty Rs. 2,000/-.
(2.) Shri R. Santhanam, DGM appearing for the appellant company refers to the Ministry's circular dt. 10.9.99 in which it is provided that when the goods imported are destroyed with the permission of the Asstt. Commissioner then no duty will be payable in respect of the duty free imported goods for use in the 100% export oriented undertakings. Shri A.K. Chattopadhyay, ld. DR appearing for the respondent submits that the goods have not been destroyed and the Commissioner has demanded duty as the procedure has not been followed.
(3.) AFTER hearing both the sides we consider that once the goods have been deposited back in the customs bonded warehouse and the importer had relinquished the title of the goods they could be disposed of as deemed fit by the customs in terms of the circular no. 60/99 dt. 10.9.99 from file no. 305/111/99 F TT.;