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TMI Blog2008 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessing Zones (for short "EPZ") or in Special Export Oriented complexes subject to these units being 100% Export Oriented Units (in short "EOUs"). 2. Pursuant to the above Scheme, a number of manufacturers/exporters set up units in the Noida EPZ. Under the Scheme, appellant was a nominated agency which could also import goods including gold for supply of the same to exporting units of the EPZ for manufacture and export as per terms and conditions of the EXIM Policy and as per notification No. 177/94 which granted exemption from payment of duty on goods such as raw materials, components, etc. imported into India by Gem and Jewellery units for manufacture of Gem and Jewellery for export out of India or for the promotion of export of gems a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner also imposed penalty of Rs.5,00,000/-, Rs.2,00,000/-, Rs.10,00,000/- and Rs.2,00,000/- respectively. For Jhandewalan EPZ, the duty demand of Rs.7,07,01,428/- was dropped by the Commissioner, against which the Department filed appeal before the Tribunal. Appellant also preferred four appeals before the Tribunal relating to Noida EPZ for which the demand was confirmed. 5. Tribunal consolidated the five appeals and disposed them of by a common order. Appeals filed by assessee were dismissed. The appeal filed by the revenue against dropping of demand of Rs.7,07,01,428/- was accepted and in addition penalty of Rs.25 lacs was imposed. 6. Appellant, being aggrieved, filed a Reference application in the High Court under Section 130(A)(i) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability for payment of duty in the event of default gets automatically transferred to the unit to whom the said gold is issued. Whether there can be any requirement read into the REP Circular No. 22/98, as held so by the Hon'ble Tribunal, namely that "MMTC has a responsibility/continuing obligation to monitor the activities of the exporting unit and to ensure export of gold/jewellery within a stipulated period of time following which M/s. MMTC has to inform the customs authorities and to levy penalty on the unit for extension of period on expiry", when, in fact there is no such requirement laid down in the REP Circular itself. Whether the finding by the Hon'ble Tribunal that "M/s. MMTC had also executed bond with NEPZ Customs under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not "likely to evade" the law, while being engaged in the supply and distribution of petroleum and petroleum products, in order to ensure an effective and efficient supply system, Mutatis Mutandis, the same legal position should apply to the facts of the present case where, as a matter of governmental policy, it was decided to arrange the import of gold through M/s. MMTC, apparently with a view to ensure an effective and efficient supply system." 7. The High Court, instead of proceeding in terms of provisions of Section 130A of the Act; confirmed the order of the Tribunal as if it is deciding the appeal/case finally on merits. 8. Counsel for the appellant contends that the High Court has erred in not proceeding in accordance with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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