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By Vijay Kumar

Customs

Import - tiles imported by the appellant are only glazed tiles which requires a lincence under the Exim Policy – Supreme court upholds the findings of the Tribunal

From the reading of the report of CRCL and the distinction between the unglazed and glazed tiles pointed out by the appellants in their correspondence with the Department, it is evident that the imported goods were not unglazed but glazed which was classifiable under tariff heading 6908.90. License of import for such goods was required, as per policy, before importing which the appellants admittedly did not have. In view of the report submitted by the CRCL , which is an expert body, we are of the opinion that the tiles imported by the appellants were glazed tiles and were liable to be classified under tariff heading 6908.90. Reasons recorded by the Tribunal in affirming the order passed by the Commissioner of Customs are perfectly valid and we do not find any reason to disagree with the same.

Service Tax

Security Agency Services – Tax cannot be assessed on assumptions and presumptions - just by looking at the returns no one can state whether the appellants were paying tax on the gross amounts or supervision charges – Demand not hit by limitation – Tribunal.

Before the Tribunal, the appellants stated that they honestly believed that it is their service of providing personnel to clients which was liable to Service Tax and accordingly they paid Tax on Service Supervision Charges computed as percentage of reimbursement of actuals ' of statutory Minimum Wages, EPF & ESIC contribution etc. According to them, the same was truly and honestly disclosed to the Department. Inasmuch as since they are under legal obligation to disclose only Primary Material facts and not the Inferential Facts, non-disclosure of Inferential Facts does not give jurisdiction to authorities to issue Show Cause Notice for an extended limitation period.

Customs

Consignment of Diamond Studded Jewellery destined for export from 100% EOU waylaid & robbed by an armed gang - No cause for effecting any recovery of duty in terms of Section 72 of the Customs Act -Tribunal.

The Commissioner (Appeals) arrived at the conclusion that the adjudicating authority's order is liable to be set aside inasmuch as the provisions of Section 72 were not applicable to the facts of the case as the goods had been duly accounted for and cleared from the EOU for export in accordance with the procedure prescribed.

See our columns tomorrow for the judgements