PARAMOUNT STEEL LTD. Vs. CC

JUDGEMENT

(1.) THE brief facts of the case are that, M/s Tiwari Brothers, who was engaged in export of auto parts, namely, 'Crank Shafts for High Speed Compressor', fraudulently substituted/declared the export item as 'Timing Shafts for Mercedes Truck' to avail higher export incentive under the Duty Entitlement Pass Book Scheme. The investigation revealed that, the export items have been mis -declared and that M/s Tiwari Brothers has obtained DEPB scrips by making fraudulent representation/mis -statement/substitution of shipping bills in order to avail higher DEPB benefit. The DEPB scrips, so obtained, were transferred/sold to various importers to utilize the same for paying the customs duty against their imports and to avail exemption from Special Additional Duty of Customs. Show cause notice was issued on this basis to M/s Tiwari Brothers proposing imposition of penalty. Show cause notice was also issued to the appellant herein, M/s Paramount Steels Ltd., for recovery of duty of Rs. 94,502/ - and for confiscation as well as for imposition of penalty. Notices were also issued to others proposing imposition of penalty. The adjudicating authority held that, the goods imported vide Bill of Entry dated 27.09.2000 by M/s Paramount Steels Ltd. were liable to confiscation. He also ordered recovery of duty of Rs. 94,502/ - from the appellants herein together with interest due under Section 28AB of the Customs Act, 1962, and imposed penalty on M/s Tiwari Brothers; however, he refrained from imposing any penalty on M/s Paramount Steels Ltd. on the ground that, there is nothing on the record to infer that the appellants herein, who has purchased the freely transferable DEPB scrips otherwise in a bonafide manner and utilized the same towards debit/exemption from duty, have colluded with the exporter who obtained the DEPB Scrips by fraudulent means. This order was appealed against before the Commissioner (Appeals), who upheld the duty demand against the appellants, but set -aside the redemption fine imposed on the ground that, since the goods were cleared for home consumption, the same were not available for confiscation. M/s Paramount Steels Ltd. has filed the above appeal against the confiscation and levy of duty, while the Revenue is in appeal against the setting -aside of the redemption fine in lieu of confiscation.

(2.) FOLLOWING the ratio thereof, I set aside the impugned order and allow the appeal. In this view of the matter, the Revenue's appeal fails and accordingly dismissed. In the result, the appeal no. C/433/07 is allowed and appeal No. C/2477/07 is rejected.