APPLICOMP INDIA LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS appeal has been filed against Order -in -Original No. 4/2006 dated 4 -5 -2006 passed by the Commissioner of Customs, Bangalore.

(2.) THE appellant a 100% EOU were given permission to manufacture compressors, blocks and valve plates. During 2001 -2002, the imported capital goods valued at Rs. 75,48,12,914/ - without payment of duty. The goods were brought to the private bonded warehouse. The goods were installed in the premises. The appellants manufactured and exported certain goods. However, on 2 -9 -2004, they requested the Development Commissioner to debond the 100% EOU and avail EPCG scheme. When there application for debonding was pending, the Customs Department conducted certain investigations. Statements of several persons were obtained. On the basis of the investigations, Show Cause Notice dated 14 -3 -2005 was issued to demand the duty foregone on the imported machinery and to confiscate them under the Section 111(o) of the Customs Act, 1962 on the ground that the capital goods have not been installed within the stipulated time. The duty demanded in the impugned is Rs. 8,79,40,937/ -. The goods have been confiscated with an option to redeem them on payment of fine of Rs. 1,00,00,000/ -. Penalty of Rs. 25,00,000/ - has been imposed on the appellants under Section 112(a) of the Customs Act. The appellants strongly challenge the impugned order.

(3.) SHRI G. Shivadass, learned advocate appearing for the appellants urged the following points.