9911796707
TMI Blog2011 (5) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs.2,73,38,443/- under the provisions of Section 111 (o) of the Customs Act, 1962 and in lieu of confiscation he imposed a fine of Rs.1.00 crore on the appellant under Section 125 (1) of the Customs Ac, 1962. The Commissioner also confirmed a duty demand of Rs.7,79,11,501.79 on the appellant in terms of Customs Notification No.51/2000 dated 27/04/2000 and 43/2002 dated 19/04/2002 along with interest thereon. The Commissioner also imposed a penalty of Rs.25 lakhs on the appellants under Section 112 of the Customs Ac, 1962. 3. The Ld. Counsel appearing for the appellant submits that in the show-cause notice dated 09/07/2007 relating to the aforesaid order the ground alleged to say that the appellant had diverted 10350.450 MTs of CR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifferent period state that they had cleared HR coils/CR coils (imported). While these entries are to be found regularly during the various months, some specific instances can be cited. In the DR-1 forms for the period from November 2004 to March 2005 and in the ER-1 form for the month of May 2005, the documents merely stated that input has been cleared as such. The importer s claim is that during the material period, they had imported duty paid HR/CR coils for much larger quantities than that is covered in the SCN and therefore, it has tobe presumed that only duty paid imported materials were sold as such. Such a presumption is not possible in interpreting a fiscal enactment. In other words, the documents filed by the importer himself revea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods imported under the advance licences in the format prescribed under the advance licence scheme and the corresponding notifications, which would clearly shows that whatever material has been imported and utilized for the purposes for which they were brought in as permitted by the advance license scheme. In addition to the imports under the advance license as mentioned above, the appellant had also imported similar products under DFRC scheme on payment of appropriate countervailing duty and they had cleared the materials under DFRC scheme as such by payment of appropriate duty by reversing the Cenvat credit taken. These clearances were also indicted in the monthly ER-1 returns, the Commissioner while passing the order mistook these c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial after slitting and cutting and converting them into sheets did not amount to manufacture and, therefore, they have violated the conditions of the impugned notifications. 5. The Ld. Jt. CDR on the other hand would submit that the licences were issued in the appellant s name in respect of their Indore unit and the goods have been transferred to Taloja unit for undertaking the various processes. In terms of condition No.VII prescribed notification No.43/2002 the said licences and the materials shall not be transferred or sold inasmuch as they have transferred the material to their own unit at Taloja. They have violated the terms and conditions of the notification and, accordingly, they are not eligible for the benefit under the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only the duty paid imported materials. Thus, we find that there is an anomaly in the ground alleged in the show-cause notice and the grounds on which the demands were confirmed in the adjudication order. The appellant has submitted that they have maintained a detailed records, which would clearly reveal that whatever has been imported by them under the advance licensing scheme has been subjected to various process amounting to manufacture as clarified by the Board in the Circular dated 07/09/2001. Since the Commissioner has not had the occasion to examine these documents and satisfy himself that the imported materials under the advance licensing scheme has been correctly utilized as per the terms and conditions of the said scheme read wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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