2008 (6) TMI 84 - AT - Customs

Case of the department is that the appellants who are purchasers of glycerine imported duty free from M/s. Shreeji Cosmetics Industries had conspired with the importer for import of raw materials under advance licence and sold thereafter in local market (without utilization in the manufacture of export product no material produced by revenue to prove conspiracy or involvement of the appellants - penalty imposed on the appellants cannot be sustained and requires to be set aside

Summary

The Appellate Tribunal CESTAT MUMBAI ruled in favor of the appellants, finding no evidence of conspiracy in importing glycerine duty-free and selling it in the local market without utilizing it in the manufacture of export products. The penalty imposed on the appellants was set aside.