Page 260 - ELT_15th June 2020_VOL 372_Part 6th

906 EXCISE LAW TIMES [ Vol. 372
Burden of licit acquisition of seized gold not discharged by accused,
confiscation sustainable - See under CONFISCATION .............. 683
Burden of proof of licit acquisition of Gold having been discharged by
accused, confiscation not sustainable - See under SMUGGLING ........ 606
— on seizure of silver granules of foreign marking - See under SMUGGLING . . 724
Business expenditure - Sales tax paid debited in separate account for set off
against subsequent sales is not business expenditure, deduction not
permissible - See under TAX RECOVERABLE ACCOUNT ........... 785
— under Income Tax law, deduction of unutilised credit at end of
accounting year not permissible - See under CENVAT/MODVAT
CREDIT ....................................... 785
Call book transfer of SCN resulting in delay in adjudication, SCN quashed -
See under ADJUDICATION ............................ 52
Car matting, classification of - See under CARPETS ................. 465
Cardamom not notified item, onus on department to establish smuggling -
See under CONFISCATION ............................ 277
Carpets - Car matting - Classification of - Stipulation in Chapter Note to 57
of Central Excise Tariff that carpets and other floor coverings in which
textile materials serve as exposed surface of Article when in use - This
feature of car mats not rejected by Revenue Authorities - Finding of
Tribunal that though in common parlance impugned product may not be
considered as carpets, in view of Chapter, Section Notes, Chapter Note 1
to Chapter 57 ibid, and interpretative notes for Rule 3(a) of Rule of
Interpretation in HSN, impugned goods classifiable under Tariff Item
5703 90 90 ibid - No error in such reasoning - Chapter 87 ibid does not
contain car mats as independent Tariff Entry -All mechanical components
covered under Chapter 87 - HSN Explanatory Notes dealing with
interpretation of rules specifically exclude “tufted textile carpets,
identifiable for use in motor cars” from Heading 8708 ibid and placed
them under Heading 5703 ibid - Third condition specified in Section XVII
ibid of Explanatory Notes in relation to “III-Parts and Accessories” not
satisfied by subject item - Just for sole reason that subject item are
exclusively made for cars and not for “home use” (in broad terms), goods
cannot be transplanted to residual entry against Heading 8708 ibid -
Subject-goods come under Tariff Item 5703 90 90 ibid - No necessity to
import “common parlance” test or any other similar device of
construction for identifying position of these goods against relevant tariff
entries - Order of Tribunal affirmed — Commissioner of Central Excise, Delhi-III v.
UNI Products India Ltd. (S.C.) .............................. 465
Cars - EPCG Scheme for import of luxury cars - Conditions - Violation
thereof - Appellants although register the car imported as private vehicle
initially but converted the registration to tourist vehicle much before
issuance of Export Obligation Discharge Certificate (EODC) - As long as
foreign exchange is earned by the hotel and imported car used for hotel
purpose, there would be no violation of any statutory requirement and it
is not necessary that the foreign exchange has to be exclusively earned by
using the vehicle - Therefore, use by Directors or use other than ferrying
tourists not breach of the conditions of exemption - Appellant having
been issued EODC on 12-6-2018 by the Jt. DGFT, Trivandrum,
department cannot proceed to recover the duty forgone at the time of
import, alleging non-fulfilment of conditions of EPCG license - Demand
not sustainable - Section 28 of Customs Act, 1962 — Joy’s The Beach Resort Pvt.
Ltd. v. Commissioner of Customs, Chennai (Tri. - Chennai) .................. 721
EXCISE LAW TIMES  15th June 2020  260