2018 (1) TMI 1449

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....re that, a specific intelligence was received by DRI, Jaipur, that the applicant had evaded Customs duty by violating the post import condition imposed in Explanation 2 vide Notification No. 24/2008-Cus., dated 1-3-2008 in Notification No. 84/97-Cus., dated [11-11-1997], as amended, in respect of import of 'Electronic Sensor Paver Model Super 1800 with AB600-2 TV Screed' vide Bill of entry No. 3577530, dated 7-12-2012. As per the inserted explanation, the benefit under this Notification was available for goods supplied to the projects financed by the United Nations or an International organization and the goods brought into the project are not withdrawn by the supplier or contractor. 3. Accordingly, investigations were initiated under summon proceedings. During proceedings statement of Shri Harender Singh, Director of the applicant firm was recorded on 19-10-2016 wherein he inter alia admitted that 'Electronic Sensor Paver Model Super 1800 with AB600-2 TV Screed' was imported vide Bill of Entry No. 3577530, dated 7-12-2012 on the basis of certificate No. 17 (258)WB/UG-692/Sec II/PMGSY-10/D-36, dated 27-1-2011 issued by Chief Engineer, Public Works Department, PMGSY, Rajasth....

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....- Misc/3867/2016-17-GR V dated 12-4-2017 to submit Bond for full value of goods and Bank Guarantee of Rs. 30 lakhs. However, at the time of issue of SCN, no information was available whether the applicant complied with the above conditions for provisional release of goods. 6. On completion of investigations, applicant was called upon to show cause to the Joint/Addl. Commissioner of Customs (Import), Nhava Sheva-1, Jawaharlal Nehru Custom House, Nhava Sheva, Tal Uran, District Raigarh, Maharashtra-400707 as to why :- (i)      the seized 'Electronic Sensor Paver Model Super 1800 with AB 600-2 TV Screed' valued at Rs. 1,19,02,557/- should not be confiscated under the provisions of Section 111(o) of Customs Act; and (ii)    the duty evaded amounting to Rs. 28,20,205/- should not be demanded from them in terms of the provisions of Notification No. 84/97-Cus., dated 11-11-1997 as amended read with provisions of Section 12 ibid and provisions of Section 125(2) ibid also read with C.B.E. & C. Circular No. 73/2000-Cus., dated 1-9-2000 and judgment dated 2-8-2001 issued by Hon'ble Supreme Court of India in case of Commissioner of Customs ....

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....e show cause notice along with interest. The applicant submitted that they were not aware of any such condition that machine cannot be withdrawn from the project site, however, on being pointed out during investigation they had paid the entire Customs duty. The applicant prayed for taking lenient view in imposition of penalty and complete waiver from fine in respect of seized machine valued at Rs. 1,19,02,557/- the release of which has not yet been taken by them. The Ld. Advocate submitted brief written submission on the matter. Shri G.P. Gupta, S.I.O, appearing on behalf of Jurisdictional Commissioner submitted that entire differential Customs duty of Rs. 28,20,205/- as demanded in the SCN along with interest of Rs. 28,10,492 has been paid by the applicant. Shri G.P. Gupta submitted that they have filed written submission on the matter and reiterated the same. 12. The Bench has carefully examined the case records and arguments put forth by the applicant and the Revenue. It is observed that the applicant has accepted and paid entire differential Customs duty liability of Rs. 28,20,205/- as demanded in the SCN along with interest of Rs. 28,10,492/-. The Revenue seeks impo....

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....otification No. 84/97-Cus., dated 11-11-1997. The Bench finds that Shri Harendra Singh, Director of the applicant in his statement dated 19-10-2016 admitted that benefit under Notification No. 84/97-Cus., dated 11-11-1997 was not available to them and they were required to pay the Customs and all activities of the firm was looked after by him and shifting of Paver machine from the project site was done as per his instructions. In view of this, Bench finds that applicant and co-applicant are liable to penal action under the provisions invoked in the SCN. (ii)    Under these circumstances, the Bench holds that the paving machine imported vide Bill of Entry No. 3577530, dated 7-12-2012 valued at Rs. 1,19,02,557/- which was seized vide seizure memo dated 9-2-2017 release of which was not taken is liable to confiscation. 13. The Bench observes that the applicant has made true and full disclosures of their liabilities, deposited the same and is therefore inclined to settle the case of applicant under Section 127C(5) of the Act, on the following terms and condition :- Duty : The differential Customs duty in respect of goods imported under Bill of Entry No....