SAJAWAT INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THESE appeals have been filed against the Order -in -Original No. 19/2002, dated 28 -3 -2002 passed by the Commissioner of Customs, Bangalore.

(2.) THE brief facts of the case are as follows : - M/s. A & A Zippers, Bangalore imported 15 Nos. of machines under two EPCG Advanced Licence for a total value of Rs. 4,99,74,509/ -. Later, the appellant M/s. Sajawat Industries Ltd. took over M/s. A & A Zippers. Since the appellants did not fulfill the export obligation, the Revenue proceeded against them. The Adjudicating authority held that the benefit of Notification 160/92 (Cus.) dated 20 -4 -92 under which the duty exemption was claimed in respect of 15 Nos. of imported machines is not available as the export obligation had not been fulfilled. He held that the impugned goods are liable for confiscation under section 111(o) of the Customs Act, 1962. He gave them an option to redeem the goods on payment of redemption fine of Rs. 75,00,000/ - under section 125 of the Customs Act, 1962. He demanded duty of Rs. 2,38,23,605/ - being the Customs duty forgone on the impugned goods in terms of Notification No. 160/92 (Cus.), dated 20 -4 -92. Interest @ 24% in terms of the Exim Policy and Handbook of Procedures was demanded. A penalty of Rs. 50,00,000/ - was imposed on M/s. Sajawat Industries Ltd. under Section 112(a) of the Customs Act, 1962. Further a penalty of Rs. 10,00,000/ - has been imposed on Shri Abdul Waheed, Managing Director of M/s. Sajawat Industries Ltd. under section 112(b) of the Customs Act, 1962. The appellants were strongly aggrieved over the impugned order. Hence they have come before the Tribunal for relief.

(3.) SHRI Rajesh Chander Kumar, learned Advocate appeared for the appellants and Shri R.K. Singla, learned Jt. CDR for the Revenue. The learned Advocate urged the following points : -