SALZER SPINNERS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS appeal arises from Order -in -Original No. 2/2001, dated 17 -7 -2001 which has been decided on de novo consideration on the directions of CEGAT. The Tribunal in their Final Order No. 1425/2000, dated 11 -10 -2000 had observed that appellants had waived the issue of show cause notice under Section 124 of the Customs Act which was applicable only for confiscation and penalty and not for demanding duty under Section 128 of the Customs Act. Hence the matter was remanded back for issue of SCN to arrive at the value of undeclared 20 spindles which were found in the consignment over and above the declaration filed in the Bill of Entry No. 3/96 for determination of value in terms of Section 14 of the Customs Valuation Rules and thereafter demand duty and confiscate under Customs Act.

(2.) THE department followed the procedure in issue of show cause notice and details of excess spindles and its value and its determination was assessed and furnished in the show cause notice. After obtaining the relevant details from the appellants, the matter was adjudicated after granting due hearing and impugned order has come to be passed by which the Commissioner has ordered for confiscation of undeclared excess portion of machinery consisting of 20 spindles valued at 10,83,884/ - under the provisions of Section 111 of the Customs Act, besides imposing a fine of Rs. 3.50 lakhs in lieu of confiscation under Section 125 of Customs Act.

(3.) AS the appellants paid the above duty, fine and penalty at the clearance of the goods in terms of earlier order -in -original 26 -2 -96, the same was appropriated. However, the Commissioner enhanced the penalty from Rs. 2 lakhs which had been imposed in terms of earlier adjudication to Rs. 3.50 lakhs besides confirming customs duty of Rs. 4,20,006/ - under the provisions of Customs Act. Appellants had already paid Rs. 9,70,006/ - vide T.R. Challan No. 132/1, dated 16 -2 -1996 towards penalty, fine and duty which was adjusted and balance amount of penalty of Rs. 1.50 lakhs has been directed to be recovered from the appellants.