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2023 (6) TMI 1088

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..... portion of his Order. The commissioner has demanded interest on the duty demanded and imposed penalty equivalent to the duty demanded in terms of proviso to Section 114A of the Customs Act 1962. The fact that the goods were diverted to DTA from their bonded warehouse is not disputed and this fact has come to the notice of the department only after investigation, is also not contested. The only plea made by the appellants is that it was done on account of their inefficiency of the staff and there was no intention to evade duty. Based on the investigations the Commissioner has rightly held the appellant had wilfully suppressed and mis-declared the fact that the goods were used within the bonded warehouse. Therefore, the appellants were lia .....

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..... purpose, they were seized and kept in safe custody. The value of the seized goods was Rs.1,35,51,459/- and the duty foregone was Rs.43,40,671/-. On the request of the appellant, the goods were provisionally released vide letter dated 23.09.2008 and 13.11.2008. After detailed verification of goods being diverted to DTA, a show-cause notice dated 21.05.2009 was issued to the appellant as the condition of the Notification No.52/2003-Cus. and No.22/2003-C. Ex. both dated 31.03.2003 were violated. 2. The Commissioner vide Order-in-Original No.29/2009-Commr. dated 6.1.2010 confirmed the violation of the conditions of the above Notifications and accordingly demanded duty amounting to Rs.30,30,182/- along with interest and also imposed penalty .....

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..... ,35,51,459/- were installed in the non-bonded area (DTA). Section 71. Goods not to be taken out of warehouse except as provided by this Act : No warehoused goods shall be taken out of a warehouse except on clearance for home consumption or 1 [export], or for removal to another warehouse, or as otherwise provided by this Act. Section 72. Goods improperly removed from warehouse, etc. (1) In any of the following cases, that is to say, - (a) where any warehoused goods are removed from a warehouse in contravention of section 71; ----------- the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with 5[interest, fine and pe .....

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..... person under this section shall be twenty-five per cent of the duty or interest, as the case may be, so determined: 5.1 The fact that the goods were diverted to DTA from their bonded warehouse is not disputed and this fact has come to the notice of the department only after investigation, is also not contested. The only plea made by the appellants is that it was done on account of their inefficiency of the staff and there was no intention to evade duty. Based on the investigations the Commissioner has rightly held the appellant had wilfully suppressed and mis-declared the fact that the goods were used within the bonded warehouse. Therefore, the appellants were liable for penalty under Section 114A. 5.2 The Commissioner has given an .....

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