2017 (7) TMI 116

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....aring. The impugned order no.14/Cus/2006 dated 30th October 2006 of Commissioner of Customs, Pune confiscated 2997 'diesel engines' under section 111 (d) of Customs Act, 1962 which were allowed to be redeemed on payment of fine of Rs. 75,00,000 and confiscated 181 'diesel engines' under section 111 (d) of Customs Act, 1962 without option to redeem. Penalty of Rs. 1,50,00,000 and Rs. 9,40,000 was imposed on the proprietor, Shri Rakesh Bagrecha. 2. The dispute pertains to the import of 181 'diesel engines' valued at Rs. 1523387 imported against two bills of entry no.732/31. 01. 01 and 733/31.01.01 that were allegedly undervalued at Rs. 944143 and 3276 'diesel engines' imported against 41 bills of entry, filed between 7th December 1999 and 5t....

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....e office of the Director General of Foreign Trade, Bangalore by the Department of Industries & Commerce, Government of Karnataka which the adjudicating authority did not consider to be reliable as these had not been produced during investigation. 4. As the importer had failed to comply with the 'actual user' condition, the 'special import licence' permitting the procurement of old and used engines would not be applicable to the import consignments; consequently, the earlier consignments were held liable to confiscation for failure to comply with post importation condition and, hence, within the scope of action under section 111 (o) of Customs Act, 1962 while the 181 engines pending for clearance were held liable for confiscation under sect....