TaxTMI 
TaxTMI 
2017 (6) TMI 195
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....d section 111 and 113 of Customs Act, 1962 to confiscate 'cut and polished diamonds' valued at Rs. 1,04,80,922/- (1184.61 carats) that was not accounted for, 'cut and polished diamonds' valued at Rs. 72,22,796/- (1095.43 carats) that were seized during investigations, unaccounted capital goods valued at Rs. 2,44,324.52 and other capital goods valued at Rs. 2,76,080/- that had been seized during investigation, confirmed duty of Rs. 52,45,104/- on 'cut and polished diamonds' and Rs. 1,69,746/- on other capital goods under section 28 of Customs Act, 1962. 2. Some of the confiscated goods, viz., 1184.61 carats of cut and polished diamonds and capital goods valued at Rs. 2,76,080/-, were allowed to be redeemed on payment....
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....ions. Thereafter, after considering the submission of the appellants the matter should be adjudicated.' 4. Proceedings were initiated against the appellant, who was operating a unit in the erstwhile Santacruz Electronic Export Processing Zone (SEEPZ) and subject to the provisions of the Foreign Rate Policy and notification no.177/94-Cus dated 21st October 1994 issued under section 25 of Customs Act, 1962, for alleged substitution of high-quality 'cut and polished diamonds' with those of inferior quality to the extent of 1184.61 carats, the attempt to remove 1095.43 carats of 'cut and polished diamonds' besides non-accountal and illicit removal of capital goods from the said unit. 5. It is the contention of Learned Counsel ....
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....re was no mixing of operations of the domestic area with that of the processing zone. The procedural requirements were also devised to ensure that the operations outside the zone were kept separate and distinct from that within the Zone. 8. It would appear from the statements of the various noticees, who were employees of the appellant, that this distinction was not being maintained. 'Cut and polished diamonds' being high value - low volume goods were amenable to the easy transfer between the domestic operations and the zone operations. It would appear from the statements that this susceptibility had been utilised for purposes that were not entirely within the rubric of the scheme. 9. We take note of the contention of the Learned ....