2011 (5) TMI 769

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ods free of custom duties for use in the manufacture of polyurethane synthetic leather.The value of the capital goods imported was Rs.2,09,92,057/-. After starting commercial production on 10.04.96 and after carrying out production for about 1 years, they closed down the Company without meeting the export obligation. It is, on this basis that a show-cause notice issued to them for confiscation of the capital goods imported, demand of customs duty amounting to Rs.78,72,023/- along with interest and also imposition of penalty on the respondent under Section  112 of Customs Act. The show-cause notice was adjudicated by the Commissioner vide order-in-original dated 5th  December, 2002 by which while the duty demand, as made in the sho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Components Ltd. vs. Commissioner of Customs - 2000 (115) ELT 278 (S.C.) and also by the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Customs, Amritsar vs Raja Impex (P) Ltd. - 2008 (229) ELT 185 (P&H), the goods which have been released against a bond can be confiscated subsequently if the same are held to be liable for confiscation, that  in view of this, the impugned order dropping the proposal for confiscation of the goods is not correct that for imposition of penalty under Section  112(a) of Customs Act, 1962, proving that  mens rea is not necessary, as under Section 112(a) of Customs Act, penalty is imposable on any person, who in relation to any goods, does or omits to do any act which act or omis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ound to be liable for confiscation, the same can be ordered to be confiscated and redemption fine under Section 125 of Customs Act can be recovered. In view of the above we hold that the impugned order dropping confiscation proceeding is not correct. 5.As regards the Commissioner's order dropping the penal proceedings, under Section 112 (a) we find that the only ground on which the penalty has been dropped is that there is no mens rea which obviously is not correct as from the language of Section 112(a) of Customs Act, it is very much clear that penalty is imposable on any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under Section 111, or abets the....