ARTHANARI LOOM CENTRE Vs. COMMISSIONER OF CUSTOMS, TRICHY

JUDGEMENT

(1.) M/s Arthanari Loom Centre, Salem, the appellant filed a Bill of Entry No 703 dt. 18.6.99 at Customs House, Tuticorin for clearance of 24 sets of second hand Picanol brand rapier weaving machine valued at US 318000.The goods were sought to be cleared under EPCG scheme for which they have a license under Notification No 29/97 -Cus. Dated 1 -4 -1997.

(2.) The goods permitted for import were the second hand machines as per list enclosed to the said EPCG license produced. This permitted the clearance of the following sets of second hand piconal Brand Rapier Weaving Machines -

(3.) However, on examination of Cargo, it was found that were 14 machines of Type : GTM -4 -RAS 190 cm there were 10 machines. However, the width of this machines were 220 cm as against 190 cm permissible.The Commissioner of Customs, Trichy vide his order dated 14.7.99 found that four machines of the Type GTM -R -RAS 190 cm were liable for confiscation since the licence was only for 10 machines and all the 10 machines type GTM -4 -RAS 190 cm were not covered by the EPCG license at all.In this view they were liable to a charge to full rate of duty , under Customs Tariff. After noting that the goods were not for sale, but whether to be installed in the factory of the appellant. He confirmed the duty on four excess quantity of machines and on the 10 machines, which were not of the size as per the license, under Section 111 of the Customs Act, 1962 and gave an option to redeem the payment of redemption fine of Rs 10,00,000/ - (Rupees Ten lakhs only) under Section 125 of Customs Act, 1962 and imposed a penalty of Rs 5,00,000/ - (Rupees Five lakhs only)under Section 112 (a) of Customs Act, 1962.