ARIHANT SYNTHETICS Vs. COMMISSIONER OF C. EX., SURAT

JUDGEMENT

(1.) M /s. Arihant Synthetics, Surat and Shri Mahendrabhai Zhaverbhai Shah, filed these appeals along with stay petition against the Order -in -Appeal No. KS/58 -60/SRT -II/2010, dated 16/20 -4 -2010.

(2.) THE facts, in brief, are that the appellants are 100% EOU manufacturing polyester texturised yarn and polyester twisted yarn. On physical verification of the stock, shortage of 5,501 kgs of POY was found. Customs duty amounting to Rs. 3,19,950/ - (Rupees Three Lakhs, Nineteen Thousand, Nine Hundred Fifty Only) was confirmed and equivalent penalty was imposed while adjudicating the case. The quantity of imported polyester POY found short was confiscated and redemption fine of Rs. 50,000/ - (Rupees Fifty Thousand Only) was imposed. Personal penalties of Rs. 50,000/ - (Rupees Fifty Thousand Only) each were also imposed upon the partners along with interest at the applicable rate. The appellants paid whole Customs duty before adjudication.

(3.) THE main contention of the appellant was that the imposition of redemption fine in lieu of confiscation and redemption fine itself was harsh. Another contention was that the demand was confirmed on the basis of shortages noticed without taking real physical stock of POY. In the appeal, they mainly prayed to set aside the redemption fine and for reducing personal penalties.