GOVERNMENT OF INDIA

MINISTRY OF FINANCE, DEPARTMENT OF REVENUE

OFFICE OF THE ASSISTANT COMMISSIONER
PARADEEP CUSTOMS DIVISION, CUSTOM HOUSE, PARADEEP (ODISHA)-754142
Tel.No. 06722-222860, 221020 : Fax No. 06722-222119, 221020 :
Email: customparadeep1@gmail.com
C. No.VIII-CUS-06(591)E/IMP/PDP/2018/ Date: 07.08.2018

SHOW CAUSE NOTICE

M/s Balasore Alloys Limited, Balgopalpur, Balasore, Odisha-756020

(hereinafter called “importer”) having IEC No. 2388000751 have imported 7,000
MT of Low Ash Low Phos Metallurgical Coke having rotation number 2197443
dated12.06.2018 through vessel MV AGIOS KONSTANIOS berthed on dated
20.06.2018 at Paradeep Port but they have failed to file any bills of entry.
Hence, The Importer have not cleared 7000MT of Low Ash Low Phos
Metallurgical Coal for home consumption within thirty days (30) from the date
of unloading of material at Custom Port and accordingly violated the section 48
of the Customs Act, 1962.

2.0 M/s Balasore Alloys Limited, Balasore vide their office letter of Ref. No.
BAL/SCM/Log/Customs/18-19/003 Dated 25.07.2018 (attached as
Annexure-I) have requested to grant permission for filling of Bill of Entry after
completion of 30 days of unloading of the cargo from the vessel at the Paradeep
Custom Port and have also requested to waive section 48 of The Customs Act,
1962 citing their unavoidable financial problems. However, Importer has not
submitted any substantial reason for delay in filing B/E, for the above cargo.

3.0 Accordingly, The Assistant Commissioner, Paradeep Division, Paradeep

vide his office letter of C. No. VIII-Cus-34(02) PDP/2017 3847 dated
31.07.2018 (attached as Annexure-II) has requested to provide the detailed
explanation of their financial problem causing which they were not able to file
the Bill of Entry and they were also requested to provide the reason for not
seeking of extension of time permission for filing of Bill of Entry within the time
limit of 30 days from the unloading of goods. The Importer vide their letter
BAL/SCM/Log /Customs/18-19/004 Dated 31.07.2018 (attached as
Annexure-III) has provided the explanation of their financial problem as the
outward fund flow for procurement of Chrome Ore(Prime raw material) and
market condition which does not appears to be satisfactory. They have also
explained that the Bill of Entry could not be filed as the required documents
could not be arranged by them which appear to be unreasonable and
unacceptable.

4.0 The importer has discharged/ unloaded 7000MT of Low Ash Low Phos
Metallurgical Coke on 20.06.2018 from the Vessel MV AGIOS KONSTANIOS
and they have made the request for waiver of Sec-48 along with permission for
filing of Bill of Entry on dated 25.07.2018, which is beyond 30 days from the
date of unloading.

5.0 The Section 48 of The Customs Act, 1962, is reproduced as below:

Sec.48. Procedure in case of goods not cleared, warehoused, or

transhipped within # [thirty days] after unloading. - If any goods
brought into India from a place outside India are not cleared for home
consumption or warehoused or transhipped within ## [thirty days] from
the date of the unloading thereof at a customs station or within such
further time as the proper officer may allow or if the title to any imported
goods is relinquished, such goods may, after notice to the importer and
with the permission of the proper officer be sold by the person having the
custody thereof:
Provided that –
(a) animals, perishable goods and hazardous goods, may, with the
permission of the proper officer, be sold at any time;
(b) arms and ammunition may be sold at such time and place and in such
manner as the Central Government may direct.
Explanation. - In this section, "arms" and "ammunition" have the meanings
respectively assigned to them in the Arms Act, 1959 (54 of 1959).

6.0 It is very clear from the above fact that, the importer has failed to clear
the aforesaid cargo for home consumption from the Custom Port i.e. Paradeep
Port within 30 days from the unloading of cargo and they have failed to seek
the extension of time limit for filing of Bill of Entry and clearance of aforesaid
cargo for home consumption within the time limit of 30 days. However, they
have made the request for waiver of Sec-48 along with permission for filing of
Bill of Entry after expiry of time limit of 30 days from the unloading of cargo.
7.0 Hence, it appears that the importer has failed to comply with the
provisions of the Custom Act, 1963 and section 48 of the Customs Act,1963
may be invoked against them.

8.0 In view of the above, M/s Balasore Alloys Limited, Balasore is hereby
required to show cause to the Assistant Commissioner, Paradeep Customs
Division, Paradeep having its office located at Custom House Paradeep,
Odisha-754142 within 10 days of receipt of this notice as to why:

(a) The general penalty upto 1,00,000/- should not be imposed u/s 117 of
Customs Act, 1962, for not filing the B/E on stipulated time, with no
substantial grounds for such delay and using the Customs notified port
area for storage without a proper procedure being followed.

(b) A detailed explanation on the submitted grounds not be demanded, as a

written submission.

9.0 The importer is also required at the time of showing cause, to produce all
the evidence upon which the importer intend to rely in support of his defence.

10.0 If no cause is shown against the action proposed to be taken or he does

not appear before the Assistant Commissioner, Paradeep Customs Division,
Paradeep when the case is posted for hearing, the case will be decided ex-parte
on merits.

11.0 The present Show Cause Notice is issued without prejudice to any other
action that may be taken under any other provision of Customs Act, 1962
and/or rules made there under and/or under the provisions of any other law
for the time being in force.
Yours faithfully,
Encl: as above
Annexure-I, II & III

(Deepa Sharma Ray)

Assistant Commissioner
Customs Division, Paradeep.
To
The Balasore Alloys Limited,
Balgopalpur, Balasore,
Odisha-756020.
 In this connection, it is intimated that the reasons submitted for non-
clearance of goods for home consumption within 30 days from the date of
unloading from the vessel MVAGIOS KONSTANIOS appears to be
unsatisfactory and untenable as the detailed elaboration of your financial
problems has not been submitted which has a bearing on filing of Bill of Entry.

It has been learnt that the 7000MT Lam Coke was discharged on
20.06.2018 from the Vessel MV AGIOS KONSTANIOS and the request for
waiver of Sec-48 along with permission for filing of Bill of Entry was made to
this office on dated 25.06.2018, which is beyond 30 days.As per Section 48 of
The Customs Act,1962, the request for extension of time limit for filing of Bill of
Entry should have made within the time limit of 30 days. However, you have
made the request after expiry of time limit of 30 days.

Therefore, you are requested to provide the detailed explanation of your

financial problem due to which you were not able to file the Bill of Entry. You
are also requested to provide the reason for not seeking of extension of time
permission for filing of Bill of Entry within 30 days of unloading of goods.

Yours faithfully,

(AMBE M)
Assistant Commissioner
Customs Division, Paradeep.
To
The Balasore Alloys Limited,
Balgopalpur,Balasore,
Odisha-756020.