2002 (1) TMI 1236

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... [Order]. - A show cause notice was issued inter alia to the present appellant for alleged attempt to export in eligible materials viz. cotton mats instead of silk and claimed DEEC benefits thereon. The notice issued to the present appellant as it appears from the impugned order proposed as follows :- "(c)     Shri S.P. Aradhya, Proprietor of M/s. Nandi Silks was issued....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4 of Customs Act, 1962." And also concluded that :- "(g)    As regards the demand for differential duty since imports had taken place through Chennai the same may have to be initiated by the Madras (Chennai) Customs House against M/s. Sree Vee Silks for goods imported under the QBAL No. 3290277, dated 23-8-94 based on facts available on record." 3. Based on these findi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is no question of invoking the provisions of Section 112 of the charge of selling the goods imported in contravention of the DEEC scheme. 5. As regards penalty as proposed in the Show Cause Notice under Section 114(ii) of the Customs Act, such penalty, under this provision, is called for only in case of dutiable goods other than prohibited goods. In the present case, the goods under export....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s only the goods which are attempted to be exported after the said preparation is complete, which are liable for confiscation on attempt to export, as provided under Section 113 and sub-clauses thereof. Since 'preparation for export' is not an offence which would render the goods liable for confiscation, no penalty could be imposed under Section 114 of the Customs Act for abetting such preparation....