2001 (1) TMI 355

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....the penalties on them contrary to the mandatory requirements of Section 112 of the Customs Act, 1962 and that pre-deposit of the amounts will cause undue hardships to them. 2. I have carefully examined the records. One of these applicants namely M/s. Pretty Women were, at the material time, engaged in the manufacture and export of gold jewellery, as a unit set up in 1993 in the Noida Export Processing Zone (NEPZ) under the EPZ scheme governed by the provisions of Exim Policy 1992-97. Under the scheme, they used to procure, duty-free, the primary gold required as raw material for manufacture of jewellery, from M/s. Metals and Minerals Trading Corporation Ltd. (MMTC) [who imported such gold] under an agreement with them. The gold jewe....

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....was liable to confiscation and, further, that the applicants were liable to penal action under Section 112 of the Customs Act on account of non-exportation of jewellery within stipulated period. Accordingly, the Commissioner imposed penalties of Rs. 5.5 lakhs, Rs. 1 lakh and Rs. 1 lakh on M/s. Pretty Women, Shri Raman Mehta and Smt Ranjana Mehta respectively and ordered confiscation of the aforesaid quantity of gold-plated silver jewellery. Hence the captioned appeals by the three parties. 3. I have heard both sides. Ld. Consultant, Shri J.M. Sharma submits that there is no finding in the impugned order that any gold-plated silver jewellery was imported by M/s. Pretty Women, nor is there any evidence on record to show that the jewel....

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..... 4. Ld. SDR, Shri M.D. Singh has opposed waiver of pre-deposit. He submits that, even in the case of MMTC involving the question of liability of import duty on a large quantity of primary gold including the aforesaid quantity of 12 kg., the Tribunal upheld penalty on partners of the jewellery units involved in that case. He, therefore, submits that the mere factum of duty liability having been fixed on MMTC would not absolve the jewellery units or partners or employees, of their liability to be penalised under Section 112 of the Customs Act. 5. I have considered the rival submissions. I find that the question of liability for payment of duty on the 12 kgs of primary gold imported by MMTC stands decided against MMTC, consequ....