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TMI Blog2017 (7) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be summarily rejected. The only infraction that comes up is that appellants have removed the goods without any prior permission or for that matter, any post-facto permission. But given the facts that the goods removed to the adjacent unit have been found available, even such infraction would only have to be considered as a procedural lapse which should not be given the colour of clandestine removal with intent of evading duty. When the impugned goods not found at the EOU unit have, however, been subsequently found in their adjacent DTA unit, there cannot be any demand of customs duty on such goods. Penalty u/s 11AC - Held that: - Imposition of equal penalty u/s 11AC ibid on JDL-EOU and confiscation of the detained goods valued at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.E/40322/2015) are registered for manufacture of Diesel Generating sets and parts of DG sets. They procure inputs both by way of imports and domestically without payment of duty. Appellants have also a DTA unit adjacent to the EOU (hereinafter it is referred to as JDL-DTA). Pursuant to a visit by the officers of the department on 09.04.2013, the following facts emerged : (i) JDL-EOU have no separate power connection. They draw power from JDL-DTA. (ii) No capital goods were installed in JDL-EOU except one overhead crane. Only 81 nos. of 'Perkins' make Engines and storage racks were found available apart from which there was no stock in JDL-EOU. 3. On visit to the JDL-DTA unit, it emerged that raw material and finished goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 26 ibid. Aggrieved, appellants have filed this appeal. 4. Today, when the matter came up for hearing, on behalf of the appellant, Shri K.S. Jain, their Managing Director, in the first place, draws our attention to MA No.E/COD/40241/2017 seeking condonation of delay in respect of Appeal E/40898/2017 filed by them. He submitted that there is a delay of 900 days in filing the appeal in respect of JDL-DTA. The reason for the delay was that they were under the impression that a common appeal would suffice for both JDL-DTA and JDL-EOU. Once they realized that there is a need for filing separate appeal for JDL-DTA, they have done so. However, in the process, this delay has occurred and sought condonation of the same. 5. We find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bly, SCN is issued only on the allegation of clandestine removal of raw materials from JDL-EOU to JDL-DTA, without any approval from concerned authorities. There is no allegation that the goods so removed have been found thereafter diverted for sale or were otherwise used by the DTA unit to manufacture their own goods. In fact, from the SCN itself, it clearly emerges that the goods so found removed from JDL-EOU were very much located and detained in JDL-DTA unit. In the circumstances, taking note of the fact that both the units are adjacent to each other under a common management, the averment that removal of goods had only been necessitated due to destruction caused in one unit due to Tsunami, should not be summarily rejected. 11. Viewe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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