2014 (3) TMI 460

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....2-Cus. dt. 1.3.2002 under Sl. No.347-C read with condition No.105. The exemption is available in respect of inputs made for overhauling the engine of flying clubs. 2. During the course of investigations undertaken by DRI, it was found that the appellant had claimed exemption on the basis of certificates issued by flying clubs and when enquired, the flying clubs replied that they have not issued such certificates at all. Therefore, it was found that the certificates were fabricated by the appellants. On the ground that the appellant was not eligible for the exemption, proceedings were initiated which has culminated in confirmation of demand of duty of more than Rs.1.1 crores with interest; penalty under Section 28 of Customs Act, 1962; pena....

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...., others did not reply. Learned counsel before the Commissioner for personal hearing submitted that he had asked for some more time to enable the appellants to go before Settlement Commission and pay the admitted liability. However, sufficient time was not given to them for going to the Settlement Commission. Further, he also submits that in the absence of several documents which were still with DRI, they could not prepare the proper reply. He draws our attention to the letters written to the DRI which have not been replied to them till now. 5. The learned AR would submit that appellant did not participate in the adjudication process and no explanation is forthcoming. Appellants have admitted that they had imported the goods through bogus ....

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....uld be that the appellant should be put to terms and as requested by the learned counsel, the matter may be remanded for fresh adjudication. Further, the learned counsel submitted that the persons concerned are all ex-HAL employees and after giving resignation to HAL they have started this firm and they do not have sufficient expertise with regard to other work other than engineering related items and therefore they have committed lot of mistakes and there are omissions on their part. Therefore, he submits that a lenient treatment may be given as a special case. Further, he also submits that the entire amount may not be payable since there are several cases where work has been done in respect of engines supplied by flying clubs. Further, he....