2003 (4) TMI 157

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..... ble fibre, polyester chips etc. for which principal raw material is purified terephthalic acid imported from South Korea, Indonesia etc. They have a licenced bonded warehouse inside their factory premises. During the visit of Central Excise officers to the factory, it was found that the appellants had received imported PTA vide Bill of Entry dated 28-10-97 for bonding in their warehouse but they h .....

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..... of the Customs Act, the finished goods containing non-duty paid raw material were liable for confiscation under Section 120 of Customs Act. Show cause notice was issued on 19-12-97 demanding duty of Rs. 1,05,75,932/- under Section 28 of the Customs Act and proposing confiscation of goods under Section 111(j) read with Sec. 120 and proposing imposition of penalty under Sections 72, 112 and 114A of .....

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..... PTA equal to or more than that the quantity involved in the present case, which was duty paid in their bonded warehouse at the relevant date. The present appeal has been filed against the confiscation and the penalty. 2. The appellants have asked for a decision on merits. Hence, I heard the ld. DR and perused the records. 3. The undisputed position is that non-duty paid PTA was used in the man .....

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