2006 (10) TMI 339

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....utilized the consumables and spares valued at Rs. 7,56,461/- imported during the year 1985-86 and 1986-87 for utilization in the exports and therefore he demanded appropriate duty amounting to Rs. 7,63,572/- along with interest at 12% which works out to Rs. 3,74,311/-. Further he has imposed a penalty of Rs. 1,00,000/- under Section 112(a) of the Customs Act, 1962 for violation of Section 111(o) of the Customs Act. He has appropriated the deposit of Rs. 12,00,000/- against the above said adjudication levies under Section 142(1)(a) of the Customs Act, 1962. The appellants strongly challenge the findings of the Commissioner. Hence they have come before this Bench for relief. 3. Shri Varadarajan, learned Advocate appeared on behalf of ....

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....thers. Therefore, it is baseless to hold that the quantity of Rs. 20,57,300/- of local sales and exports made related to the production done during the period of 100% unit function. (iii)   The Commissioner's only ground on which he rejected this contention is that the letter dated 9-7-86 was not referred to in the reply dated 17-10-88 and hence it is not relevant. The Commissioner's finding is not maintainable as the Tribunal while remanding the case has categorically observed that the matter is remanded to the Original authority for consideration afresh after taking into consideration all the fresh evidence available on record and any other evidence which may be submitted by the appellant before him with regard to their expor....

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.... are liable to pay duty. 6. We have gone through the records of the case carefully. The appellant's unit which manufactures polished granite is in existence even from the year 1971.  Only in the year 1984, the Government of India permitted them to function as 100%. The appellants imported consumables during the period from 1985-86 onwards in the following manner:- 85-86 Rs. 3,13,963 86-87 Rs. 4,42,498   Rs. 7,56,461 87-88 Rs. 10,90,237 88-89 Rs. 4,66,702 89-90 Rs. 3,57,206 91-2001 (twice) Rs. 2,72,000 Total consumables imported Rs. 29,52,606 The actual export under 100% E.O.U. scheme started only in the year 1987 onwards. It is the Revenue's contention that duty free consu....