2023 (6) TMI 1088

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....d in-bond manufacturing vide Order No.146/2005 (Customs) dated 11.7.2005, which was valid up to 10.2.2010. Appellants imported as well as procured indigenously capital goods, raw materials, packing material and consumables free of duty vide Notification No.52/2003-Cus. and No.22/2003-C. Ex. both dated 31.03.2003. On preliminary investigation, it was found that 29 Daikin Air Conditioners, one FET continuous filament melt spinning system and 31 bin storage racks were not available within the bonded area. It was found that these were installed and used in a non-bonded area i.e., Domestic Tariff Area (DTA). Since the said goods were not used for intended purpose, they were seized and kept in safe custody. The value of the seized goods was Rs.1,....

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....enalty imposed is not correct in law and needs to be set aside. 4. The learned Authorised Representative Mr. K. A. Jathin, reiterated the findings of the learned Commissioner and insists that the records prove that the conditions of the Notifications were violated by the appellant and the learned Commissioner has rightly confirmed the duty and imposed penalty as per law. Hence, the appeal needs to be rejected. 5. On perusal of the records, it is observed that during investigation by the officers of customs it was noticed that 29 Daikin Air Conditioners, one FET continuous filament melt spinning system and 31 bin storage racks valued at Rs.1,35,51,459/- were installed in the non-bonded area (DTA). "Section 71. Goods not to be taken out o....

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.... reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under [sub-section (8) of Section 28 shall also be liable to pay a penalty equal to the duty or interest so determined: Provided that where such duty or interest, as the case may be, as determined under 3 [sub-section (8) of Section 28, and the interest payable thereon under section 28AA, is paid within thirty days from the date of the communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent of the duty or interest, as the case may be, so determined:" 5.1 The f....