TaxTMI 
TaxTMI 
2008 (12) TMI 209
X X X X Extracts X X X X
X X X X Extracts X X X X
.... per liter, ordering payment of duty on the oil on that basis, confiscating the oil under Section 111(m) of the Customs Act, 1962 (the Act), ordering a redemption fine of Rs. 10,000/- and imposing a penalty of Rs. 5,000/- on the appellant under Section 112(a) of the Act. The appellant is an EOU engaged in the manufacture and export of Floor Coverings made of Sisal fibre and coir. It has an annual turnover of Rs. 50 crores. The appellants imported a Second-hand Sisal Yarn Spinning Machine and spares in four consignments in the year, 2006. The last consignment cleared under the Bill of Entry No. 386995, dated 10-5-06, comprised spares of the sisal spinning machine. On examination of the goods at the docks, it was seen that the goods imported ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reiterates the plea before the lower authority that the value of the imported oil had been arbitrarily fixed at Rs. 525/- per liter. As the oil in question was not covered by the 'Letter of Permission' issued to the EOU, the appellant did not dispute the liability to duty on the impugned goods. However, the order of confiscation and penalty on allegation of non-declaration was harsh and the fine and penalty deserved to be set aside. It is however, submitted that the value of the sisal spinning machine and spares imported was above rupees one crore. The value of the consignment of spares which had included the impugned gear oil was Rs. 13,87,674/-. 4. The ld. SDR submits that the authorities had ascertained the assessable value of the impug....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ately misdeclared. The charge found is that the oil was not declared. The impugned order records the appellant's submission that the drum containing oil was kept in front of the goods stuffed in the container with no intention to conceal the same. The supplier had dismantled the spinning machine and packed in several containers. Several of the large number of items covered by each Bill of Entry had not been declared in the Bills of Entry. Only main items had been declared. It so happened that the supplier had also exported the gear oil lying with him which had no use for him when the machinery was dismantled and exported. An item not specifically covered by the LOP issued to the appellants happened to be imported in these circumstances. As ....