TaxTMI 
TaxTMI 
2017 (6) TMI 1054
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.... is a SEZ Unit and licensed by the Development Commissioner to operate within NOIDA Special Economic Zone (NSEZ), NOIDA, U.P. On 14.01.2011, during the course of routine check at NSEZ Gate No.1, a vehicle bearing Registration No.UP16Y2306 driven by Shri Deepak Mehta, Manager of Sangam International was stopped and checked by the security staff of NSEZ. During the course of checking of the vehicle, it was detected by the security staff that 12 pieces of Yellow metal, which appeared to be gold bars of .995 purity was concealed in polythene cover and was kept inside the Car. Since the said consignment was not accompanied by any valid document, the Customs Department seized the goods contained in the polythene cover and proceedings were initiat....
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....i - 2016 (340) E.L.T. 221 (Tri.- Mumbai) 4. With regard to confirmation of duty demand of Rs. 3,70,800/- alongwith interest, the ld. Consultant submits that the appellant is not contesting such liability and had deposited the duty alongwith interest and 25% of penalty before initiation of show cause proceedings by the Department. However, his prayer in this appeal is confined to confiscation of gold bars and jewellery and imposition of penalty and redemption fine in the adjudication order. 5. On the other hand, the ld. D.R. appearing for the respondent - Revenue submits that since the vehicle was intercepted and checked at gate No.1, which was about to leave the SEZ area, it cannot be said that the goods were seized within the SEZ area, i....
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.... customs did not have necessary jurisdiction within the territory of Special Economic Zone. Hon'ble Gujarat High Court in Bharat J. Gandhi Vs. Union of India 2010 (257) ELT 168 (Guj.) and Morgan Tectronics Ltd. Vs. CC, New Delhi - 2005 (316) ELT 276 (Tri. Del.) make the matter clear. CESTAT, Delhi in the case of Morgan Tectronics (supra) has inter-alia in para 8 of its decision observed as under: "8. Moreover, in terms of the Section 53(1) of the SEZ Act, 2005, the SEZ is deemed to be territory outside the Customs Territory of India, and the goods imported were meant for the unit in SEZ Noida. In our view, the Commissioner of Customs, Air Cargo, New Customs House, New Delhi and no jurisdiction to confiscate these goods and impose penalty....