MPHASIS LTD. Vs. COMMISSIONER OF CUS., BANGALORE

JUDGEMENT

(1.) THESE appeals have been filed against the Order -in -Original No. 2/2007 dated 31 -1 -2007, passed by the Commissioner of Customs, Bangalore.

(2.) THE appellants are a 100% E.O.U. working under the STP Scheme. Revenue initiated action against them on the ground that they were sharing the imported/procured duty free Capital goods in contravention to the conditions of Notification No. 52/2003 -Cus. dated 31 -3 -2003 and Notification No. 22/2003 -C.E. dated 31 -3 -2003. The Adjudicating authority passed the impugned order demanding duty amount of Rs. 87,35,374/ -. Further, interest under the relevant provisions of the Notification was demanded. The duty free imported goods valued at Rs. 1,47,39,986/ - were confiscated under Section 111(o) of the Customs Act, 1962. The locally procured goods valued at Rs. 69,09,000/ - were also confiscated under Rule 25 of Central Excise Rules, 2002. Redemption fine of Rs. 3,00,000/ - under Section 125(1) of the Customs Act, 1962 and Rs. 2,00,000/ - Section 34 of Central Excise Act, 1944 were imposed. A penalty of Rs. 2,00,000/ - was imposed on the appellants under Section 112(a) of the Customs Act, 1962 and Rs. 1,00,000/ - under Rule 25 of the Central Excise Rules, 2002 were imposed. The appellants strongly challenged the impugned order.

(3.) SHRI Rajesh Chander Kumar, learned Advocate appeared for the appellants and Shri Anil Kumar learned JDR for Revenue.