TaxTMI 
TaxTMI 
2001 (9) TMI 403
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....h interest, besides ordering confiscation of 5/850 pcs. of unbranded video cassettes and 48840 pcs. of unbranded audio cassettes with option to get the same redeemed on payment of fine of Rs. 15 lakhs and revocation of private bonded warehouse licence. He has also imposed penalty of Rs. 10 lakhs on Jagjit Singh, Proprietor of M/s. Parneet Electronics and partner of M/s. Jagjit Electronics, Super Tech Industries & M/s. Straight Exports along with confiscation of the goods seized at the premises of these companies with option to redeem the same on payment of fine of Rs. 2 lakhs. He further had imposed penalty of Rs. 50,000/- each on M/s. Jagjit Electronic, M/s. Super Tech Industries & M/s. Straight Exports, appellants. 2. The appellants....
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....settes. The permission was later on extended to even manufacture pre-recorded video cassette and blank audio cassettes vide letter dated 7-7-95 and then again for the manufacture of pre-recorded audio cassettes as well through letter dated 17-10-97 as per conditions stipulated therein. They were also granted a licence for private bonded warehouse under Section 58 of the Customs Act for depositing the imported duty free pre-recorded cassettes, which were to be utilised for the manufacture-in bond, of the finished goods and their subsequent export. Later on, however, the officers got the information that they were indulging in clandestine removal of the blank video and audio cassettes imported free of duty in terms of concession available und....
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....n make were placed in the factory in lieu of the Sony Cassettes, which were sold in local market. On completion of investigation, the show cause notice was served on all the appellants and after adjudication the Commissioner passed the impugned order vide which he confirmed the duty and imposed penalty as detailed in the order and also confiscated unbranded blank video cassettes and audio cassettes. 7. The ld. Counsel has however contended that no effective hearing was afforded to the appellants and inventory regarding the shortage was not correctly prepared and that the appellants approached the High Court against the sealing of their factory and seizing of the goods lying therein on the ground that the stock checking and physical ve....
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....in the impugned order and the latest verification of stock report prepared by the officers, regarding the shortage of goods and raw material. The admission of Proprietor Shri Jagjit Singh of the Company M/s. Parneet Electronics regarding replacement of the imported goods with the Indian goods and the shortage of the Video cassettes/audio cassettes, constituted substantial piece of evidence to bring home the allegations as made out in the show cause notice against the appellants. Therefore, no prima facie case is made out for allowing total waiver of pre-deposit of duty amount. 9. Financial hardship of the appellants pleaded by the Counsel on the ground that due to sealing of the factory and breakage of fire, the goods have destroyed/d....