2000 (5) TMI 817

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....-condition of penalty of Rs. 1 lakh imposed on M/s. Inter Trade which is proprietory unit and an equal amount imposed on Shri Nirmal Kr. Saraswat, who is proprietor of the said firm. He submits that the penalties have been imposed by the Commissioner on the ground that the appellants, who imported Mulberry raw silk against advanced licences did not fulfil export obligation and instead diverted the material for home consumption at huge profits in violation of the condition of the Notification No. 80/95-Cus., dated 31-3-1995. The appellant's contention is that the Mulberry silk yarn in question was sent to the job workers at Bangalore who did not return the material in time and as such licence expired in the meanwhile. He had applied for exte....

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.... after dispensing with the condition of pre-deposit of penalties, the appeals itself may be taken up for disposal inasmuch as he is not challenging the duty confirmation part of the order but is only advancing submissions on the imposition of penalties upon the appellants. 2. Shri J.M. Kenedy, ld. JDR countering the arguments draws our attention to the observations made by the Commissioner. He submits that the appellant's claim that the Mulberry raw silk in question imported duty-free under advanced licence were supplied to supporting manufacturer was factually not established. In any case the fact remains that the goods imported were not processed in the manufacture of resultant export products and the export obligation were not fu....