2008 (1) TMI 77

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....ies within the specified Export Processing Zones (for short "EPZ") or in Special Export Oriented complexes subject to these units being 100% Export Oriented Units (in short "EOUs"). 2. Pursuant to the above Scheme, a number of manufacturers/exporters set up units in the Noida EPZ. Under the Scheme, appellant was a nominated agency which could also import goods including gold for supply of the same to exporting units of the EPZ for manufacture and export as per terms and conditions of the EXIM Policy and as per notification No. 177/94 which granted exemption from payment of duty on goods such as raw materials, components, etc. imported into India by Gem and Jewellery units for manufacture of Gem and Jewellery for export out of India or fo....

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....cation orders were passed and Commissioner also imposed penalty of Rs.5,00,000/-, Rs.2,00,000/-, Rs.10,00,000/- and Rs.2,00,000/- respectively. For Jhandewalan EPZ, the duty demand of Rs.7,07,01,428/- was dropped by the Commissioner, against which the Department filed appeal before the Tribunal. Appellant also preferred four appeals before the Tribunal relating to Noida EPZ for which the demand was confirmed. 5. Tribunal consolidated the five appeals and disposed them of by a common order. Appeals filed by assessee were dismissed. The appeal filed by the revenue against dropping of demand of Rs.7,07,01,428/- was accepted and in addition penalty of Rs.25 lacs was imposed. 6. Appellant, being aggrieved, filed a Reference application in ....

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....sion that once the gold is issued to a unit, the liability for payment of duty in the event of default gets automatically transferred to the unit to whom the said gold is issued. Whether there can be any requirement read into the REP Circular No. 22/98, as held so by the Hon'ble Tribunal, namely that "MMTC has a responsibility/continuing obligation to monitor the activities of the exporting unit and to ensure export of gold/jewellery within a stipulated period of time following which M/s. MMTC has to inform the customs authorities and to levy penalty on the unit for extension of period on expiry", when, in fact there is no such requirement laid down in the REP Circular itself. Whether the finding by the Hon'ble Tribunal that "M/s. MMT....