2026 (6) TMI 25

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....nd to the objections filed inter alia which includes jurisdictional aspects and thus stands vitiated. 2. Learned counsel for petitioner would submit that petitioner is an authorised SEZ unit for manufacture of gearboxes used in Wind Operated Electrical Generators (WOEG), axles and transmissions for off-highway vehicles. The items so manufactured are exported and also sold in the Domestic Tariff Area (DTA), after complying with the provisions of SEZ Act and Rules by paying appropriate customs duty in respect of sales to DTA buyers. 2.1. During the period 01.04.2020 to 31.03.2020, petitioner had sold gearboxes and oil cooling systems manufactured in SEZ unit to buyers in DTA. He would submit that DTA sales by SEZ are treated as imports ....

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....above submission, reliance was also placed on a judgment of the CESCAT, Chennai in the case of Commissioner of Customs, Sea, Chennai-II vs Sri Krishna Sounds and Lightings reported in 2019 (370) ELT 594, wherein it was held that Section 114AA may not get attracted except in cases of paper transactions. iv) Reliance was also placed on the judgement of the CESTAT, Bangalore, in the case of Interglobal Aviation Ltd., vs The Principal Commissioner, Custom Bangalore reported in 2022 (379) ELT 235, for the very same proposition. v) Reliance was also placed on Section 21 of SEZ Act, which provides that Central Government may by notification specify any act of omission made punishable under any Central Act as notified offence for ....

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....y has exceptions which are fairly well settled and some of them being viz., a) Order is in violation of natural justice; b) Lack of jurisdiction ; c) Error apparent on the face of the record. 5. Learned counsel for petitioner would submit that the challenge to the impugned order is both on the ground of violation of natural justice inasmuch as the opportunity that was extended was a mere empty formality inasmuch as objections have not been dealt with and more importantly, objections also touches on the jurisdiction to invoke penalty under Section 114AA. 6. This Court wanted to find from learned Senior Standing Counsel if the above objections have been dealt with and also point out the passages in the impugne....