DHAMPUR SUGAR MILLS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) ALLEGATION against appellant and issues involved: Appellant was issued Advance Authorisation on 14 -3 -2005 to import raw sugar under actual user condition. Accordingly raw sugar was imported by the appellant during the year 2005 -2006. Revenue alleged that 2496 MT of sugar exported by appellant to United Arab Emirates through ICD Ghaziabad by 12 shipping bills with aggregate value of Rs. 7,46,86,924/ - during July -Aug., 2010 was without release order from appropriate authority. According to Revenue such failure resulted in violation of law. But appellant pleaded that export having been regularized by the Directorate of Sugar adjusting above quantity against future release order for export, in terms of their letter dated 23 -6 -2011, there was no violation of law made by the appellant. Also plea of appellant was that it was an actual user of imported goods and the export being done on "grain -to -grain" basis, there was no violation of law. Department also alleged that the above 2496 MT of sugar exported were neither manufactured out of the imported raw sugar nor the export made on "Ton -to -Ton" basis. Therefore those were liable to confiscation and penalty. However, the goods not being physically available for confiscation, having left India, no redemption fine was imposed under Section 125 of Customs Act, 1962. Penalty of Rs. 1,00,00,000/ - (Rupees one crore only) each were imposed on the appellant under Sections 114(i), 114AA of Customs Act, 1962. Added to that, penalty of Rs. 10,00,000/ - (Rupees ten lakhs only) was imposed on Shri Mukul Sharma, General Manager of appellant under Sections 114(i), 114A of Customs Act, 1962.

(2.) ON the aforesaid dispute, ld. Adjudicating Authority framed following issues and decided the same against the appellant: -

(3.) HEARD both sides and perused the record.