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TMI Blog2010 (12) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... nchetty of M/s.SDS Steel Private Limited for conversion of the same into MS Billets. 3. According to the Petitioner, M/s.Jai Bhawani Steel Enterprises Limited stored its materials to the tune of 29667.639 MTS at the bonded warehouse. The Company already submitted advance license to the Assistant Commissioner of Customs, Bond Department, Chennai for the clearance of the said materials along with a letter dated 18.1.2010. M/s. DDS Steel Rolling Mills Pvt. Limited also filed ex-bond bills of entry to the tune of 375.3880 MTS. There was some delay in the clearance, for which the Company had been corresponding with the Assistant Commissioner of Customs (Bond Department) Chennai. 4. It is the case of the Petitioner that the Respondent, suspecting that there had been diversion of scrap billets, plate, etc., has initiated proceedings and sent a notice under Section 108 of the Customs Act, 1962 to the Petitioner calling upon him to appear before the Respondent on 18.11.2010 at 11.00 a.m. There has been no violation of any of the provisions of the Customs Act, 1962 and M/s.Jai Bhawani Steel Enterprises Limited has got a valid license to carry on it activities. In the said circumstances, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty. However, as the petitioner requested for clearance of the goods under advance license and had filed an appeal, their request had been rejected. 7. The Respondent further stated that there should be totally 45291.469 MTs of various types of materials such as steel billets, secondary plates, shredded scrap, heavy melting scrap, light melting scrap, turning and boring scrap, etc. valued at ₹ 76,47,33,854/- available in the two bonded warehouses. After making the preliminary estimates of quantity supposed to be available, on 2.11.2010 the Respondent along with his team went to the customs bonded warehouses of the said Companies in which the Petitioner is the Managing Director and prepared observation and quantification mahazars based on visual inspection. The approximate quantity available for M/s.Jai Bhawani Steel Enterprises Limited was found to be as follows:- i. Only about 50 container loads (about 1021 metric tonnes) of light melting scrap consisting of crushed car bodies scrap in pressed bundles valued at ₹ 1.22 crores were available, as against 6356 MT valued at ₹ 7.61 crores declared. Thus in the light melting scrap category about 5335 metric tonne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 30182164 7781158 12 Cast iron scrap 73.655 Nil Fully missing 4 928238 180512 13 Secondary strips 218.480 Nil Fully missing 8 3695782 1171688 Total Missing Contents 23430.35 880 378080380 73453650 8. The Respondent further stated that the approximate quantity available for M/s.SDS Steel Private Limited was found to be as follows:- i. Though the entire quantity of turnings and borings appeared to be available, only about 75 containers loads (about 1715 metric tonnes) of light melting scrap consisting of crushed car bodies scrap in pressed bundles valued at ₹ 2.88 crores were available, as against 4300.169 metric tonne valued at ₹ 7.21 crores declared. Thus, in the light melting scrap category, about 2584.68 metric tonne (about 113 containers) of value ₹ 4.33 crores is missing. ii. Only about 20 container loads (about 520.78 metric tonnes) of Tin can bundles (UTCB) valued at ₹ 79.87 lakhs were available, as against 703.06 metric tonne valued at ₹ 1.08 crores declared. Thus in the tin can bundles category, about 182.28 metric tonne (about 7 containers) of value ₹ 27.95 crores is missing. iii. There were no shredded st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded warehouse license Nos.P-795 dated 11.11.2003 and P-909 dated 6.2.2008 respectively under Section 58(1) of the Customs Act, 1962. As per the conditions stipulated in the licenses granted to the Petitioner, the license holders are responsible for the safe custody of the bonded goods and for the due observance of the law and they have to maintain proper stock books and stock cards to enable ready checking of the quantity among other conditions which have not been fulfilled by them. Accordingly, the Petitioner has violated the provisions of the double entry bonds furnished by them as they have illegally removed the goods. 11. This court heard the rival submissions of the learned counsel on either side and also perused the materials placed before this court. 12. Section 62(2) of the Customs Act, 1962 reads as follows:- "No person shall enter a warehouse or remove any goods therefrom without the permission of the proper officer." 13. The Petitioner, who is the Managing Director of the two Companies, namely, M/s.Jai Bhawani Steel Enterprises Limited and M/s.SDS Steel Private Limited, is alleged to have removed the goods without the permission of the proper officer. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Petitioner would further submit that the Petitioner is ready to cooperate with the Investigating Agency and would submit relevant records and documents as required by them. 17. On the other hand, Mr.R.Dhanapal Raj, the learned Special Public Prosecutor for the Respondent would submit that both M/s.Jai Bhawani Steel Enterprises Limited and M/s.SDS Steel Private Limited have illegally removed the goods from the customs bonded warehouses and therefore, the said goods are liable for confiscation under Section 111(j) of the Customs Act, 1962 and the importer would be liable for penalty under Section 112(a) of the Customs Act, 1962. It is further submitted that the Respondent made attempts to meet the Petitioner by visiting to his Office premises at No.91, (Old No.44) 2nd Floor, Armenian Street, Chennai-1 and 6H, Century Plaza, 560/562, Anna Salai, Teynampet, Chennai and both the premises were found vacated and that neither the Petitioner nor his family members were available at the residence of the Petitioner. It is also submitted that the Petitioner had ceased all operations at their factory and bonded premises at No.2/220, GNT Road, Panjetty Village, Ponneri Taluk. The summons dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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