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C/20641 & 20642/2022

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL

BANGALORE

REGIONAL BENCH - COURT NO. 1 Customs Appeal No.20641 of 2022

(Arising out of Order-in-Appeal No.1640/2022 dated 12.08.2022 passed by the Commissioner of Customs (Appeals), Bangalore.)

M/s. Advanced Forming Technology Centre, Appellant(s)

#8B, Siddhi Vinayaka, 2^nd Phase, Outer Ring Road, 2^nd Block,Nagarabhavi,

Bengaluru - 560 072.

VERSUS

Commissioner of Customs, Bangalore Customs, Respondent(s)

C.R. Building, Queens Road, P.B. No.5400, Bangalore-560 001.

WITH

Customs Appeal No.20642 of 2022 (Arising out of Order-in-Appeal No. 1639/2022 dated 12.08.2022

passed by the Commissioner of Customs (Appeals), Bangalore.)

M/s. Step Electronics Pvt. Ltd., No.8B, Siddhi Vinayaka, Appellant(s)

2^nd Phase, Outer Ring Road, 2^nd Block, Nagarabhavi, Bengaluru - 560 072.

VERSUS

Commissioner of Customs, Bangalore Customs, Respondent(s)

C.R. Building, Queens Road, P.B. No.5400, Bangalore-560 001.

APPEARANCE:

Mr. M.S. Nagaraja, Advocate for the Appellant.

Mr. Maneesh Akhoury, Asst. Commissioner (AR) for the Respondent. CORAM: HON’BLE MR. D.M. MISRA, MEMBER (JUDICIAL)

HON’BLE MRS. R. BHAGYA DEVI, MEMBER (TECHNICAL)

Final Order No. 20649 - 20650 / 2026

DATE OF HEARING: 07.04.2026 DATE OF DECISION: 07.04.2026

C/20641 & 20642/2022

PER : R. BHAGYA DEVI

These two appeals have been filed by the appellants M/s. Advance Forming Technology Centre and M/s. Step Electronics Pvt. Ltd. against Order-in-Appeal No. 1639/2022 & 1640/2022 dated 12.08.2022 passed by the Commissioner of Customs (Appeals), Bangalore. Since the issues are common in

both the appeals, the same are disposed of by common order.

2. In both the appeals, the facts are that the appellants M/s. Advance Forming Technology Centre, Bangalore and M/s. Step Electronics Pvt. Ltd. had imported various electronic items vide various Bills of Entry No.144756 and 144658 dated 27.04.2006, Bills of Entry No.116936, 116934 dated 20.03.2006; No.116927 dated 07.07.2005; and No.145888 dated 28.04.2006 which were warehoused under respective warehouse bonds. The permissible warehousing for the bonds expired on 07.05.2007 and the appellants had failed to clear the warehoused goods before the stipulated date. Hence, a show-cause notice was issued to the appellants demanding customs duty under Section 72(1) read with Section 124 of the Customs Act, 1962 along with applicable interest invoking provisions for confiscation and imposition of penalty. The original authority confirmed the duty amount and imposed penalty along with the redemption fine under Section 125 of the Customs Act, 1962, which was upheld by the

Commissioner (Appeals) in the impugned order.

3. The Learned Counsel appearing on behalf of both the appellants submits that the imported goods were warehoused for further use; however, due change in technology, they could not use the said goods; hence, they failed to clear it for home consumption. On the receipt of the show-cause notice dated 25.06.2021, the appellants submitted a letter dated 21.01.2022 stating that they had unconditionally relinquished the title to the subject goods deposited in the customs warehouse in terms of Section 23 read with Section 68 of the Customs Act, 1962. It is his submission that they had informed the department for considering their request to dispose of the goods vested in the government and drop further proceedings. It is his submission that the Commissioner (Appeals) has not recorded any findings

C/20641 & 20642/2022

on the request made by the appellant. He further submits that on similar facts, the Commissioner (Appeals) had allowed the appeal filed by M/s. Tulsyan NEC Ltd., Bangalore; hence, the impugned order disallowing the same benefit to the present appellants cannot be sustained. He also submits that Section 23 read with Section 68 of the Customs Act, 1962 allows the importer to relinquish the title to the goods at any time before an order for clearance of goods for home consumption is ma