2005 (8) TMI 599

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d goods after assessment on payment of duty on 8-10-98. After clearance the goods were sold to one M/s. Tarun Enterprises on an estimated profit claimed to be about Rs. 50,000/-. 1.2 DRI Officers recorded certain statements dated 26-10-98 & 27-10-98 & thereafter a notice dated 29-11-99 was issued, contending that the goods, as declared & imported, were not capable of use as insole in leather industry & since they were sold to a trader & not an actual user in leather industry the benefit of notification availed was not eligible. The notice issued vide para 11 states - "(a) The importer has willfully mis-declared the subject goods as sheets for making Insole and wrongly claimed the benefits of concessional rate of duty under Notif....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....est under Section 28AB. Goods were held liable to confiscation under Section 111(m) & 111(o) of the Customs Act 1962 & ordered adjustment of Rs. 3 lakhs deposited during investigation towards duty demand & imposed a penalty of Rs. 6,50,310/- under Section 114A of the Customs Act 1962, a penalty of Rs. 4 lakhs on the Director under Section 112 of the Customs Act, 1962. Hence these appeals. 2.1 After hearing both sides & considering the material on record & the submission made it is found - (a) the adjudicator has not arrived at any finding on the time bar issue raised. (b) At the time of import, i.e. on 5-10-98 when the BE was filed, the practice in the Custom House, as established, was to allow the clearance of Nylon Tricot Flo....