2017 (7) TMI 671

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....fashion apparels, fashion accessories, food & confectioneries, perfumes & cosmetics, technology and electronics, without payment of customs duty. The validity of the licence was renewed with the condition that they shall remain in force till further orders. The appellant offered for extension of bonding in respect of the items in bond. It was also informed by the appellant that there was some variation in stock position and that they would reconcile the same and also undertook to pay the differential duty if such reconciliation is not possible. Demand notice was issued for payment of Customs duty involving shortage/excess which was discharged by the appellant. The lower authorities, after following due process of law, confiscated the goods ....

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....emoved from the Warehouse. (v) Lower authorities have not appreciated the fact that goods kept in bonded warehouse cannot be said to have crossed Customs frontiers and hence no duty liability arises. 4. Ld. DR reiterates the findings of the lower authorities. 5. On careful consideration of the submissions made by both sides, it is noticed that appellant has not been able to justify the defence taken by him against imposition of penalties and also confiscation of the goods. It is undisputed that there was some excess stock in the Warehouse and also shortages of the duty free goods brought in for clearances. The said excess and shortage was communicated by the appellant himself to the lower authorities which indicates that there is d....

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.... case goods were not cleared for export and were lying in the DFS. Therefore, as rightly commented by lower authority and referred to at paras 5.6 of above section 113 (k) of the Customs Act, 1962 is applicable. With regard to excess stock of goods at Customs Bonded Warehouse that, the manipulation of records by the appellant showing the clearance to DFS without actually affecting the clearance to DFS, establishing their intention for clandestine removal subsequently, which is contrary to terms and conditions attracting provisions of Section 111(j) of the Customs Act, 1962." 6. I do not find any infirmity in the above reproduced findings of the order of first appellate authority and in view of this, the findings of the lower authorities ....