Order date – 18 October 2022

 Facts –

• The Appellant, Balkrishna Industries Ltd, is manufacture of “off road tires”. The appellant imported Shell Flavex Oil 595/B Shell Flavex Oil 595H and classified the goods under Customs Tariff Heading 38122090.
• Show Cause Notices dated 20.01.20016 and 08.09.2016 were issued proposing to reject the classification claimed by the Appellant under CTH 38122090 and to classify the same under 27079900-Rubber Processing Oil of Customs Tariff Act, 1975 and reassess bill of entry accordingly. Also imposed differential duty along with interest and penalty.
• Aggrieved, Appellant has filed an appeal.

Issue – 

• Whether the imposition of duty along with interest and penalty are in order?

Order – 

• The Tribunal observed that as per the submission made by the Appellant, is eligible for deemed conclusion of the case under Section 28(2) of the Act in as much as there is no willful suppression or misdeclaration by the Appellant. The entire proceedings including confiscation of seized goods, imposing of redemption fine, penalty under Section 112(a) and Penalty under Section 114A gets covered under “deemed conclusion” under Section 28(2) of the Customs Act, 1962 as the full amount of duty along with interest have been paid much before the issuance of show cause notices.
• Section 28(2) of Customs Act 1962  are applicable without prejudice to the provisions of Sections 135, 135A and 140 of the Customs Act but perusal of Show Cause Notices makes it clear that none of these provisions have been invoked at the time of issuing Show Cause Notices.
• Hence, the Tribunal opined that case of appellant is very much covered under the deemed conclusion scheme legislature under Section 28 of the Customs Act. It is well settled law that the legislative intent, extending certain beneficial provision to the assessee, should not be made frivolous by interpreting the provision in a particular manner other than the one which reflects upon such intent.
• Appeal is allowed.