2004 (3) TMI 192

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....sed Warp Knitted Fabrics on High Seas sales basis) illicitly removed and sold in the local market instead of being used in the manufacture of export garments, confiscated 5,350 pieces of Lady-gowns and 650 kgs. of waste under Section 113(d) of the Customs Act, on the ground that gowns were not manufactured out of imported raw materials but out of indigenously procured raw materials, with option to redeem the same on payment of fine of Rs. 2,50,000/-, imposed penalty of amount equal to duty under Section 112(a) and Section 114 of the Customs Act and has also imposed a penalty of Rs. 10 lakhs on Shri Sanjay B. Goyal, Director of the first appellant-company under Section 112(b) and Section 114 of the Customs Act. The total quantity of 1,62,763....

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.... from the fabrics imported by them, to M/s. Systematics Corporation and the weight difference could be explained by M/s. Systematics Corporation, while Shri Shyam Bihani proprietor of M/s. Systematic Corporation clearly stated that ready-made garments were received from M/s. Dhanlaxmi Garments Pvt. Ltd. under AR 4 Nos. 1 to 4 and they prepared the Shipping Bills on the basis of invoices, packing lists and cartons received from M/s. Dhanlaxmi Garments. 2. We have heard Shri Willingdon Christian, ld. Counsel for the appellants and Shri K.K. Srivastava, ld. DR for the Revenue. The preliminary objection raised by the appellants is that the show cause notice is bad in law as it has been issued by the Director of DRI who is not the proper offi....

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....period of limitation. 5. Yet another contention of the appellants is that the confirmation of the demand under Section 72 is not sustainable, as for the purpose of demand of duty short-levied, the demand could be raised only under Section 28. This plea also requires to be rejected in the face of the clear language of Section 72 which reads as under :- "Section 72. Goods improperly removed from warehouse, etc. - (1) In any of the following cases, that is to say, - (a)        where any warehoused goods are removed from a warehouse in contravention of Section 71; (b)        where any warehoused goods have not been removed from a warehouse at the expiration of the....