2026 (5) TMI 1113

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....on under the proviso to section 28(1) of the Customs Act, 1962 [the Customs Act] The order also charges interest from the appellant and penalties under sections 114 and 114AA of the Customs Act. 2. The appellant formed a proprietorship firm M/s. Shri Sai Traders. On 20.12.1988, the firm obtained permanent registration certificate from Commercial Tax Department, Circle Dewas (M.P.) for trading of all short of chemicals, laboratory equipments and scientific equipments, packing material, hardware, industrial machinery, thread and general goods. 3. During the course of business, the firm between 19.10.2007 to 19.11.2007, sold 157.035 Metric Tons of MS Scrap valued at Rs. 29,73,985/- to M/s. New Tech Abrasives Ltd., F-59, 60, 61 Indore SEZ....

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....he appellant under section 108 of the Customs Act. The statement of the appellant was also recorded 29.06.2011 Excise Act read, wherein the appellant stated that during 19.10.2007 to 08.11.2007, his firm had supplied Scrap valued at 29,73,985/- under cover of various invoices and submitted the copies of 12 invoices. 7. A show cause notice dated 24.08.2012 was issued to many persons including the appellant with the show cause notice, copy of appendix was served but copy of none of the relied documents was served to the appellant. After receipt of show cause notice, the appellant requested the Commissioner and ADG DGCEI to provide the copies of relied upon documents, but the appellant was not provided the copies of relied upon documents. ....

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.... (i) The demand of customs duty from the appellant is against the provisions of the Special Economic Zone Act 2005 [SEZ Act] and the rule made thereunder; (ii) If the demand cannot be sustained interest cannot be levied upon the appellant; (iii) Penalty under section 114AA of the Customs Act could not have been imposed upon the appellant as the show cause notice did not call upon the appellant to show cause why penalty should not be imposed under section 114AA of the Customs Act; and (iv) The principle of natural justice were violated as the relied upon the documents were not serve upon the appellant. 14. Shri Ajay Jain, learned special counsel appearing for the department, however, supported the impugned orde....