TaxTMI 
TaxTMI 
2004 (3) TMI 99
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....red in overlooking the wording "including partly assembled movements" and interpreting the same as only 'watch parts' and not as covered under the notification under Section 11B or 123 of the Act, and whether CEGAT was right in relying on market opinion in place of notifications under the Customs Act. (3) Whether the CEGAT has erred in holding that the SKD packs and CKD packs were only parts of watches and not covered by the notification. Whether the CEGAT was right in holding that the usage of the case packs and CKD packs, were not restricted to the importer and could be sold in open market, event though the notification places the restriction of usage by importer only as per notification 43/85-Cus. (III)". 2.The respondent is a Government company with two watch manufacturing units at Jalahalli, Bangalore. The officers of the customs department, on receiving information that stocks of smuggled watches and components were stored in the factory premises of the respondent conducted a search of the premises. According to the Department, the search disclosed the following: (a) A stock of 10,000....
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....pect of the said bond should not be enforced. (iii) Why the 10000 numbers ADD wrist watch movements of 8200 calibre (in CKD condition) supplied by M/s. Vespa Trading Company, Bombay and M/s. R.R. Corporation, Navsari, Gujarat to M/s. HMT Ltd. together valued at Rs. 28,31,250/- under seizure should not be confiscated under Section 111(d)/111(p) of the Act. (iv) Why the 4896 nos. of ADD wrist watches valued at Rs. 27,49,710/-manufactured out of the wrist watch movements supplied by M/s. Lakshmi Watches Pvt. Ltd., Bangalore should not be confiscated under Section 120(1)/120(2) of the Act. (v) Why the plastic/polythene covers and the other packing materials such as cardboard boxes used for keeping/concealing the goods under seizure, should not be confiscated under Section 118/119 of the Act, 1962. (vi) Why penalty should not be imposed on them under Section 112(a) & (b)(i) & (ii) of the Act. 4.The respondent and M/s. Lakshmi Watches (P) Ltd., filed objections denying any irregularity in the supplies or violation of provisio....
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....the Act. HMT Ltd., was however allowed to redeem the goods on payment of a redemption fine of Rs. 6,00,000/- in addition to the relevant customs duty applicable as on the date of seizure of the said goods, under Section 125 of the Act, by exercising option within a period of 30 days from the date of receipt of the order. Confiscation of 4896 Nos.(iv) of ADD wrist watches, under seizure manufactured out of wrist watch movements supplied by M/s. Lakshmi Watches (P) Ltd., under the provisions of Section 120(2) of the Act. HMT Ltd., was however permitted to redeem the said ADD wrist watches on payment of a redemption fine of Rs. 1,50,000/- under Section 125 of the Act, by exercising option within a period of 30 days from the date of receipt of the order. (v) Confiscation of the plastic/polythene covers and the other packing materials such as the cardboard boxes used for keeping/concealing the goods under seizure under the provisions of Section 118/119 of the Act. (vii) Direction that no separate duties of customs be collected while releasing the goods upon realisation of redemption fine, in respect of the ....
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....y required that the importer shall, within such period as the Assistant Collector of Customs may specify, produce a certificate from the Assistant Collector of Customs, within whose jurisdiction the factory was situated to the effect that the said imported components had been used in the manufacture of the wrist watches and therefore the manufacture of watches can either be by the importer itself or by any purchaser from importer, and as HMT purchased the goods for manufacture of wrist watches and had in fact used most of the purchased goods for manufacturing watches, there was no violation of the Notification No. 43/85, dated 28-2-1985 5.3The Tribunal therefore held that there was no ground for confiscation or levy of penalty. 6. Feeling aggrieved, the revenue has filed this petition under Section 130A seeking a reference. In the grounds seeking reference, the Revenue was found fault with the Tribunal's findings both in respect of supplies by R.R. Corporation/Vespa Trading Co., and the supplies by Lakshmi Watches (P) Ltd., However significantly, all the three questions of law raised relate to the supplies by R.R. Corporation/Vespa Trading Company and not in regar....
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....us 26 parts contained in the two envelopes (a) and (b), put together would constitute one set of components to fully assembled watch movements parts? and (2) whether the set components said to be watch movements of calibre 8200 were of foreign origin or not? The said expert opined that the components in envelopes (a) and (b) put together constituted the component of a complete watch movement. The Tribunal held that the goods seized were neither 'fully assembled watch movements' nor 'partly assembled watch movements'. Further, one important part, namely, 'Winding Stem' was not found in the parts. Therefore they were only watch parts, which were not covered by any notification issued under Sections 11B and 123 of the Act and therefore the burden of proof would not shift to the respondents. We find no error in the said finding. 9.Section 11B of the Act empowers the Central Government to specify any goods by notification, if having regard to the magnitude of the illegal import of such goods, it is expedient to take special measures for the purpose of checking the illegal import, circulation or disposal of goods of any class or description, or facilitating the detection of such goods....