2026 (5) TMI 1179

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....proviso to section 28(1) of the Customs Act 1962 [the Customs Act] with interest. The order also confiscates the goods under section 113 of the Customs Act and imposes penalties upon the appellant under sections 114 and 114AA of the Customs Act. 2. The appellant is the proprietor of M/s. Manglam Steel, Ratlam and is engaged in the trading of various goods. M/s. New Tech Abrasive Ltd. [NTAL] has a factory in the Indore Special Economic Zone [SEZ] and is engaged in manufacturing of MS Ingots and shots/Grills falling. 3. A show cause notice dated 24.08.2012 was issued to NTAL alleging that they had clandestinely removed M.S. Ingots from their factory at SEZ, without payment of customs duty and that the appellant had supplied 991.391 M.T.....

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....MS Scrap was supplied by the appellant to NTAL, which is located within the Indore SEZ Premises; (ii) The records also do not show the manner in which cash was received by the appellant; (iii) Not a single piece of evidence has been recovered from the appellant regarding the supply of MS Scrap to NTAL. The department has also not adduced any evidence regarding the procurement of huge quantity of 1986.366 MT of MS Scrap by the appellant as no investigation was made from the buyers from whom appellant may have purchased the MS Scrap; (iv) The department has relied upon the records of ledger found from the room of Ganpat Singh, Machine Operator of NTAL and pages seized from the computer of the NTAL which are third pa....

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....submissions advanced by the learned counsel for the appellant and the learned special counsel appearing for the department have been considered. 10. The first issue that arises for consideration is whether the appellant was liable to pay any customs duty, even if it is assumed that the appellant has supplied MS Scrap to NTAL, which has a factory at SEZ. This issue was examined by a Division Bench of this Tribunal in Cummins Turbo Technology vs. Commissioner of Customs, Central Excise & Central Tax, Indore [(2023) 12 Centax 334 (Tri.-Del)] After examining the provisions of the Special Economic Zones Act [SEZ Act] and the SEZ Rules. The Division Bench held as follows: "31. The charging sections, having been overridden by the SEZ A....