9911796707
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Issues:
1. Alleged diversion of duty-free imported goods in the local market. 2. Search and seizure of goods from the private warehouse. 3. Confiscation of goods, duty demands, interest, and penalties imposed. 4. Cancellation of the private bonded warehouse license. 5. Liability of the proprietor and employee in the illegal activities. 6. Adjudication by the Commissioner and subsequent appeal. Detailed Analysis: 1. The Appellants, a proprietary concern holding a private warehouse license for importing and storing duty-free goods, were suspected of diverting goods in the local market without paying duty. A search revealed discrepancies in the warehouse, including missing gas cylinders and tampered seals, leading to allegations of illegal activities under the Customs Act and EXIM Policy. 2. The search conducted at the warehouse uncovered irregularities such as empty gas cylinders, unauthorized modifications to the premises facilitating illegal transfers, and evidence of refilling imported cylinders into locally procured ones. The proprietor admitted to these activities, implicating an employee in the process of removing and replacing gas cylinders. 3. The Commissioner's order included confiscation of seized goods, duty demands amounting to Rs. 17,42,031, interest recovery, penalties under Section 112, and cancellation of the private bonded warehouse license. The order also allowed for redemption of seized goods upon payment of a fine and adjustment of a partial payment made by the Appellants. 4. The Commissioner's decision was appealed, challenging the findings related to confiscation, duty demands, penalties, and license cancellation. The appellate tribunal upheld certain aspects, such as the liability for confiscation of replaced cylinders and reduced the redemption fine. Duty demands were limited to unaccounted imported gas cylinders, and penalties were adjusted based on the findings of illegal activities. 5. The liability of the proprietor and employee in the illegal activities was established based on admissions and evidence presented during the proceedings. The tribunal affirmed the penalties imposed on the proprietor and the employee, considering their roles in the unauthorized removal and refilling of gas cylinders. 6. The appellate tribunal disposed of the appeal by modifying certain aspects of the Commissioner's order, reducing penalties, adjusting duty demands, and allowing for the removal of goods under preventive escort to another bonded house. The decision aimed to address the violations of the Customs Act and EXIM Policy while providing a resolution for the seized goods and the future handling of imported items. This detailed analysis outlines the issues, findings, and decisions made in the legal judgment regarding the alleged diversion of duty-free goods and subsequent actions taken by the authorities and the appellate tribunal.
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