1994 (6) TMI 58

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....ants' unit in Kandla Free Trade Zone (KAFTZ) was lying in-operative since long and the said imported goods were found unutilised for a period of over one year from the date of its import. Accordingly, show cause notices were issued to the appellants as to why duty on the said imported goods be not charged, the said goods be not confiscated and penalty be not imposed on them.  2.3 The appellants, however, submitted that the goods were duly utilised by them and off-highway trucks were assembled from such parts. They however, could not be exported on account of some dispute regarding the value addition between the appellants and the Development Commissioner of Zone/Ministry of Commerce. According to the appellants, they were insisting on....

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....e Ministry of Commerce for value addition of 30% has held up the goods from exportation. This is something beyond the control of the appellants. In the circumstances, no mens rea could be attributed to the appellants for not undertaking the export of the goods after utilising the imported goods in the resultant product of off-highway trucks; export could not be made because of the subsisting dispute between the appellants and the Development Commissioner of the KAFTZ. In these circumstances, imposition of penalty and confiscation of goods is not at all warranted.  4. Learned JDR, Shri K.K. Dutta, on the other hand reiterates the findings of the adjudicating authority. He submits that enough time has been given to the importers/appella....