2013 (10) TMI 1004

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....d 12.2.2002. He has admitted that duty free fabric after import has been disposed off in the open market without undertaking any manufacturing activity in the factory. 3. After suspension of the Private Bonded warehouse licence, the notice-1 received 52829.92 meters of polyester Dyed Fabrics vide Bill of Entry No. 539120 dated 22.2.2002 and IMP-B-B-601007 dated 15.1.2002 without payment of customs duty leviable thereon under Notification No. 53/97-Customs dated 3.6.97 to be used for production of goods for exports, but removed the imported 'polyester fabrics' 58/60 and 100% polyester dyed fabrics' totally measuring 52829.92 meters in 225 cartons, without examination and clearances thereof by the proper officer and without issuance of re-warehousing certificate by the proper officer in contravention of the provisions of Sections 60, 62, 67, 71 and 72 of the Customs Act, 1962. Noticee-1 transferred the imported fabrics as such without permission of the proper officer in violation of the conditions of the said notification and without intimation to the proper officer regarding receipt of imported goods without payment of custom duty in their 100% EOU, without examination of goods by ....

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....aboratory, Vadodra and so appeared to have been replaced by noticee-1 as the said fabrics did not correspond to the material imported i.e. polyester fabrics58/60 and 100% polyester dyed fabrics 58/60 as declared in Bill of Entry No. 539120 dated 22.1.2002 and IMP-B-B-601007 dated 15.1.2002 filed by noticee-1 under ARE-3 No. 1 & 2 both dated 11.6.2002. It was found that the noticee-2 had mis-declared the receipt of 52829.92 meters of fabrics in D-3 No. 164 dated 14.6.2002 as 'Polyester dyed fabrics' whereas the test report of the said fabrics confirmed that the same was 'knitted fabrics' Further Private Bonded Warehouse licence granted to Noticee-1 under Section 58-(1) of the said Act and suspended on 21.5.2002 was also proper for cancellation as provided under Section 58(2) of the said Act. 4. Seizure of goods and classification of fabric as polyester dyed fabric was proposed with imposition of penalty on noticee 1 and 2. 5. M/s Shri Karamveer Singh, Proprietor of M/s Singh Overseas has contended that he has retracted the statement dated 11.2.2002 and 12.2.2002 vide his letter dated 13.2.2002. But no such retraction is available on record. As such party's contention is rejected a....

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.... of packing material designs, patterns, labels or other apparel accessories were found in the unit clearly indicating that no manufacturing activity of ready-made garments had been undertaken in the Unit. 9. Shri Karamveer Singh, Proprietor of M/s Singh Overseas, appellant in his statement dated 11/02/2002, 12/02/2002 recorded under Section 108 of the Customs Act, 1962, interalia, stated that no activity for manufacturing of ready-made garments had been undertaken in the factory that the fabrics imported by them duty free under 100% EOU Scheme had been disposed off in the open market and the exports were made by them after procuring ready-made garments for the open market. 10. During investigation, it was found that appellant had cleared Polyester Dyed Fabrics measuring 52829.92 meters in 225 cartons under ARE-3 No.1 and 2, both dated 11.6.2002 to M/s Shiv Shakti Industries, Plot No. 450 A, G.I.D.C. Near 1st Water Tank, Ankleshwar (Gujarat) (here-in-after called as M/s SSI) against CT-3 No. 51 dated 11.06.2002 issued by the superintendent, Central Excise. Since the Private Bonded Warehouse Licence of the appellant was suspended w.e.f. 21-05-2002, clearance effected by appellant....

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....t permission of the proper officer in violation of the conditions of the said Notification and without intimation to the proper officer of receipt of imported goods without payment of customs duty in their 100% EOU, without examination of foods by the proper officer at the time of removal of the goods from their 100% EOU and without issuance of re-warehousing certificate by the proper officer in violation of the provisions of the above said sections of the said Act. Therefore, Noticee-1 has suppressed the receipt of imported fabrics in their factory and clearance thereof as such was not intimated to the Department in order to willfully avail undue benefits of Notification No. 53/97 Customs Dated 3.6.97, as amended, on the imported fabrics. 13. It is further observed that, Noticee-1, to cover up the diversion of the imported fabrics into local market had, vide their letter dated 20.6.2002 to Noticee-2 through, the Private Bonded Wareshouse License No. 1/2001/SO/RTK/100%EOU dated 24.07.2001 was suspended by the Assistant Commissioner, Central Excise & Customs Divisions, Rothak on 21.5.2002 and, therefore, clearances said to have been effected on 11.6.2002 were in contravention of th....