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TMI Blog2011 (1) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... matter examined in detail as to whether the duty is demandable. As regards penalty, it is directly relatable to the value of the goods manufactured and confiscated. Since we have already held that a lenient view is called for as regards confiscation and redemption fine, the corresponding reduction in the penalty is warranted. This is especially in view of the fact that no evidence of clandestine removal of any goods has been brought out. - Appeal No.C/571, 572/2006, E/1533/1534/2006 - - - Dated:- 28-1-2011 - Mrs. Archana Wadhwa, Mr. B.S.V. Murthy, JJ. Appellant: Shri Samir Udani. Respondent: Shri Hardik Modh, Adv. Per: MR. B.S.V. Murthy: Appellant No.1 M/s Lacure Pharmaceuticals Ltd., a 100% EOU was manufacturing pharmaceut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es were manufactured far and on behalf of M/s Intermed and nowhere there was a restriction on a 100% EOU or a 100% EOU prohibited from undertaking the manufacture of final product for export for and on behalf of the third party. Notification No.53/97-Cus, dt.5.6.97 in respect of imported input and Notification No.1/95-CE, dt.4.1.95 in respect of indigenous inputs have no conditions or prohibitions restricting use of raw material obtained without payment of duty for manufacture of final product for export by third party. In this case, export obligations have been fulfilled by the appellant in terms of EXIM policy. The object and purpose of such notifications have been fulfilled by the appellant since all the goods which were seized have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel that the appellant themselves had manufactured the goods for and on behalf of the M/s Intermed cannot be accepted. In view of above position, the conclusion of the lower authority that the goods had been manufactured in contravention of provisions of Customs Act, has to be sustained. Further, a 100% EOU is required to maintain proper accounts and also submit periodical returns to the Central Excise department and therefore confiscation of goods valued at Rs.11,40,959/- also has to be sustained. 5. In case of medicines having mark as marketed by M/s Cadilla Pharmaceuticals Pvt. Ltd which were found unaccounted on the date of visit, valued at Rs.5,18,269/- the appellant has not put up any credible defence as to why the same was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the appellant themselves. Even though these submissions were made by the appellant, lower authorities have ignored them on the ground that the goods were manufactured without permission and therefore the duty liability is attracted. Whether the duty can be demanded on the goods which have been exported and whether the goods have been exported at all as claimed by the appellants, whether the export benefits have been derived by the domestic unit, are required to be considered and matter examined in detail as to whether the duty is demandable. As regards penalty, it is directly relatable to the value of the goods manufactured and confiscated. Since we have already held that a lenient view is called for as regards confiscation and redemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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