9911796707
TMI Blog2007 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ic information that waste/sweepings containing gold and silver were being smuggled out of various jewellery units located in SEEPZ in the guise of garbage, by M/s. Sales Corporation (proprietor Shri Mohd. Aslam Sayed), garbage removal contractor, in connivance with the jewellery units, investigation was taken up and the office, godown and residential premises of Shri Mohd. Aslam Sayed and his accomplices and the shop-cum-residence of M/s. Vimal Jewelers (proprietor Shri Dhanraj Rathod) were searched on 19-8-98, resulting in recovery of approximately 35 MT of waste containing gold and silver valued at Rs. 70 lakhs, 8.5 kg. crude silver, Indian currency of Rs. One lath and various incriminating documents which were seized under panchanama. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance of such waste in the guise of garbage. 3. From the above it appeared that Shri Mohd Aslam Sayed and his associates connived with the various jewellery units in SEEPZ to remove gold and silver in the guise of garbage. Such gold and silver was imported duty free into SEEPZ for the purpose of manufacture of jewellery for export and the waste arising during the course of manufacture of jewellery was required to be sent to the Government Mint for retrieval and thereafter retrieved quantity was to be reused in the manufacturing process. According to the department the clearance of such waste without payment of appropriate customs duty was contrary to condition No. 1(8) of Notification No. 177/94 dated 21-10-94 which provides that scrap, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. One lack under Sec. 121 and against penalty under Sec. 112. Notice was also issued to the SEEPZ security guards for imposition of penalty. 5. The notice was adjudicated by the Commissioner of Custom (Preventive), Mumbai by ordering confiscation of the waste and the sweepings containing gold, silver and other metals with an option to redeem the same on payment of fine of Rs. 7.5 lakhs, directed discharge of duty liability under Section 125(2), ordered confiscation of silver seized from M/s. Vimal Jewellers with an option to redeem the same on payment of fine of Rs. 5,000/-, directed discharge of duty liability on silver by M/s. Vimal Jewellers, ordered confiscation of the Indian currency seized from M/s. Vimal Jewellers with an opt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. We have heard both sides. We find force in the submission of ld. Counsel for Shri Md. Aslam Sayeed that the order has been passed by an officer not having jurisdiction to adjudicate the present case for the reason that, as per Para 1.9 of the Manual on Procedures of Customs and Central Excise for Units in SEEPZ issued vide Public Notice No. 11/99 dated 20-12-99, adjudication for contraventions of the provisions of Customs Act/Central Excise Act on the part of units in SEEPZ is to be done by the Assistant Commissioner, SEEPZ/ Jt. or Addl. Commissioner of Customs, Airport/Commissioner of Customs, Airport depending upon the value of offending goods. Further, as per Para 1.4 of the above referred Manual, technical control of SEEPZ is w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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