METRO EXPORTS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) WHEN these two applications were taken up for hearing, it appeared that the issue involving a question of law already being settled, the appeals themselves could be disposed of. This was done by granting waiver of pre -deposit of penalty of Rs. 5,98,825 and Rs. 41,228 respectively.

(2.) THE appellants possessed advance licences entitling them to import goods without payment of duty in terms of Notn. No. 203/92 -Cus. On having fulfilled the obligation to export, the appellants secured the endorsement of transferability of their licences. The licences were transferred and the goods were imported by the transferee licence holder. At a later point, show cause notices were issued alleging that in the manufacture of export goods, the Modvat credit had been taken. It was alleged that the imported goods were liable to confiscation under Section 111(O) of the Customs Act, the transferee importers were liable to pay duty and the present appellants were liable to penalty. In the two orders, the Commissioner confirmed the duty against the importers who are not before us in these two appeals. He also imposed penalties as aforesaid on the present appellants.

(3.) THE Commissioner's orders imposing penalty read as under: I impose penalty of Rs. 5,98,825 on the licence holder M/s. Metro Exports Ltd. under Section 114A of the Customs Act, 1962. I do not impose any penalty under Section 112 of the Customs Act, 1962 as Section 114A clearly precludes imposition of penalty under both the Sections 112 & 114A.