2004 (9) TMI 165

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....re imported in the name of M/s. Fresh Laboraters and cleared duty free under DEEC and 88 were part of an import made by M/s. Shreeji Cosmetics Industries DEEC. (ii)        Both these importing firms were claiming Modvat credit on goods exported to meet DEEC obligations. Thereafter the diversions in the market were made in contravention of DEEC imports. (iii)       M/s. Flash Laboraters were found to be selling goods and 3 Advance licences to Shri Yogesh Kerani owner of M/s. Nikita Packaging Pvt Ltd appellants in appeal no. C/351/95. (iv)       Yogesh Karani was negotiating with foreign suppliers and also arrange for money to retire the do....

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....ction 112(a) of the Customs Act, 1962 and no justification found to impose penalty on partners of M/s. Fresh Laboraters. (iv)       Penalty of Rs. 20 lakhs on Yogesh Karani proprietor of M/s. Mahant Exports under section 112(b) of the Customs Act 1962. (v)        No penalty was imposed on appellant in appeal No. C/350. Hence these appeals. 3.Heard both sides and considered the issue, it is found - As regards appellant in appeal No.(a) C/350/95 (i)         from the findings of the adjudicator it is apparent that the innocent purchase of Glycerine in question by the appellant is established. Glycerine is under OGL, confis....

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.... believe that goods are liable to confiscation". Since goods are under OGL, there could be no reason to believe on part of the appellant as regards liability to confiscation under that section 111(d) which has been held by the adjudicator and which we are not upholding. As regards liability to confiscation under section 111(o), the entire case of the department is built up on the premise of non use of Glycerine in the goods exported. Therefore the imports were not found to be permissible under DEEC licence. In this connection, even if the confiscation is upheld under section 111(o) on the grounds of "no-nexus"of the goods under import with the Raw Material used in the exported goods under DEEC, the finding of the Commissioner at para 42, pa....