2012 (9) TMI 273

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.... per : P. Babu, Member (T)]. - This is an appeal filed by the Revenue against the order of Commissioner (Appeals) No. SKSS/285-286/SRT-II/2010, dated 30-12-10, rejecting the department's appeal. M/s. Millat Fibres, Surat were alleged to have diverted duty free inputs. Appropriate Customs duty was confirmed with equivalent penalty and ordering interest vide OIO No. 01/SNP-ADC/OA/2008-09, date....

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....ain contention was that the assessee, while obtaining re-warehousing licence and licence to manufacture, under bond under Sections 58 & 65 of Customs Act, 1962, have inter alia undertaken to observe all provisions of Customs Act, 1962, Central Excise Act, 1944 and rules made thereunder. Therefore, the said bond is available for enforcing and for recovery of any fine. Revenue again relied upon the ....

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....logic and law and not sustainable. 3. Now, coming to the issue of enforcing bond, it was canvassed by the Revenue that the unit had executed G-17 bond and all liabilities against 100% EOU are being covered by this bond. I find that the unit had executed a bond while obtaining warehousing licence and to manufacture for working as EOU. However, no bond was executed for release of the goods c....