TaxTMI 
TaxTMI 
2017 (3) TMI 1347
X X X X Extracts X X X X
X X X X Extracts X X X X
....rder M/s Yenkay Medico Drugs Pvt Ltd are in appeal against order-in-appeal no. 440/2006 MCH/JtEP/05 dated 6th September 2006 of Commissioner of Customs (Appeals), Mumbai upholding the demand of duty of Rs. 5,46,643/-, interest thereon, and penalty of Rs. 5,46,643/- for failure to use 'sodium cyanide' and 'dimethyl urea', imported without payment of duty, in manufacture of specifie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....39; had been used in the exports effected by the appellant and the remaining imported goods had been used in production that was sold in the local market as there- was no stock of imported material even though the licence period had expired on 23rd October 1994. 4. Another 10.3 MT of 'sodium cyanide' valued at Rs. 333817 had been imported against bill of entry no. 6545/17.11.93 and cleare....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ra under section 112 of Customs Act, 1962. Though the specific provision under which penalty was imposed on importer is not detailed in the order, the findings do indicate that it is section 112(a) that has been invoked. 6. In appeal, it is contended that specific submissions made to first appellate authority have not been taken into consideration at all. Among these is the applicability of inter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the imported goods is regularised by confiscation and release of confiscated redemption fine. The non-availability of the imported goods renders this impossible requiring recourse to the penalties for appropriate corrective. Normally, such diversion to uses that are not permitted are a consequence of the premium commanded in the domestic market for such imported inputs. The appellants have expla....