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Issues:
Misuse of DEEC imports, diversion in the market, penalty under Customs Act, 1962, confiscation of goods, duty demands, imposition of fines, liability for penalty under various sections. Analysis: 1. Misuse of DEEC Imports and Market Diversion: - An enquiry revealed that firms were misusing DEEC imports and diverting goods in the market. Sales made to certain individuals were found to be in contravention of DEEC imports regulations. The investigation uncovered instances of improper sales and advance payments for goods not yet imported. 2. Confiscation and Duty Demands: - A show cause notice was issued, leading to the confiscation of goods and imposition of fines. The duty on Glycerine was determined, and penalties were imposed on the importing firms and individuals involved in the transactions. 3. Judgment on Confiscation and Penalties: - The Tribunal analyzed the cases of the two appellants separately. For the first appellant, the innocent purchase of Glycerine was established, leading to the setting aside of confiscation orders. Duty demands were directed towards the importing firms only. - For the second appellant, the Tribunal found that the confiscation orders could not be upheld as the goods were covered under Open General License (OGL). The penalty imposed under section 112(b) was also questioned based on the lack of reason to believe that the goods were liable for confiscation. 4. Liability and Penalties under Customs Act: - The Tribunal scrutinized the liability for penalties under various sections of the Customs Act. It was emphasized that penalties should be imposed based on the knowledge or reason to believe that goods are liable for confiscation. In this case, due to the lack of evidence and proper justification, certain penalties were set aside. 5. Final Decision and Orders: - The Tribunal set aside the confiscation orders and penalties imposed on the appellants after thorough analysis of the facts and legal provisions. The appeals were allowed, and the orders related to the appellants in appeal nos. C/350 & C/351 were overturned. 6. Conclusion: - The judgment focused on the legality of the confiscation orders, duty demands, and penalties under the Customs Act in connection with the misuse of DEEC imports and market diversions. By carefully examining the evidence and legal provisions, the Tribunal made a comprehensive decision to set aside certain penalties and orders, ultimately allowing the appeals of the concerned parties.
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