1999 (7) TMI 327

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....uts used in their manufacture, sub-assemblies of "audio systems" (details of which are not specified in the order impugned in the appeal) to M/s. Elegant Teletubes, a neighbouring concern (Elegant for short), without following the procedures prescribed in Rule 57F(2) or reversing the credit. He therefore confirmed the demand for duty proposed, ordered confiscation of the goods valued at Rs. 66.68 lakhs (found in the premises of Elegant), under Rule 173Q with an option to redeem them on payment of fine of Rs. 30 lakhs and imposed a penalty of Rs. 75,000/- on M/s. Nihon. 2. Appellants are absent. By letter dated 1-5-1999, their common advocate has requested for decision on merits, in the absence of any instructions from them. We have ....

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....or cross-examination of officers which was not asked for. 4. It is next contended that the transfer of these sub-assemblies to Elegant was done under the permission granted by the Assistant Collector. It is true that permission was granted for Nihon for sending the goods for finishing jobs under the premises of Elegant under Rule 57F(2). This permission, however, imposed operation of the relevant rule, an obligation on Nihon to get the goods back or to have them cleared on payment of duty from Elegant. It has not been shown that the goods have been disposed of by any one of these two manners. 5. The next contention is that the sub-assemblies in question were sent by M/s. Orson Electronics Ltd. a sister concern of Elegant, an....