2007 (3) TMI 69 - AT - Customs

Demand, Confiscation and Penalty Revenue contended that the imported goods were substituted for old and used ones by the appellant and accordingly separate penalties imposed on the appellant firm and proprietor Held that contention of revenue is correct and demand for the consolidated penalty

Summary

Issues:
1. Import of Video Pan Cake under Notification No. 53/93-Cus.
2. Examination of consignment revealing old and used tapes.
3. Dispute over testing of tapes by Doordarshan Kendra, New Delhi.
4. Allegation of failure to export goods made out of imported tapes.
5. Imposition of duty demand, confiscation, and penalties.
6. Denial of proper opportunity of hearing to the appellant.

Analysis:
1. The appellant, a 100% EOU, imported Video Pan Cake under Notification No. 53/93-Cus, availing duty exemption on the condition of exporting goods manufactured from the imported tapes.
2. Upon examination, it was discovered that the tapes were old and used, containing fungus and wrinkles, leading to demands for duty payment, confiscation, and penalties.
3. The appellant contested the testing of tapes by Doordarshan Kendra, Delhi, arguing lack of facilities for accurate testing and questioning the basis of the expert opinion.
4. The appellant claimed that its unit was under revenue's physical control, refuting allegations of substituting imported goods with old ones and highlighting the denial of re-examination of the export consignment.
5. The Revenue justified duty demand and penalties, citing the failure to export goods made from the imported tapes, supported by Doordarshan Kendra's expert opinion.
6. The Tribunal upheld the impugned order, except for separate penalties on the firm and its proprietor, consolidating the penalty on the firm to Rs. 2 lakhs, while setting aside the personal penalty on the proprietor.
7. The appellant's appeal was allowed in part, confirming the impugned order with the modified penalty imposition.

This detailed analysis covers the issues raised in the legal judgment, outlining the facts, contentions, and decisions made by the Tribunal regarding the import, examination, testing, export obligation, duty demands, and penalties imposed, ensuring a comprehensive understanding of the case.