MRF LTD. Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THIS appeal is against the confirmation of Customs and Additional Customs duty to the extent of Rs. 78,26,825/ - of the Customs Act and the order of confiscation of goods covered by the two Bills of Entry viz., Nos. 468, dated 2 -3 -93 and 500, dated 4 -3 -93 under Sections 111(m) and 111(o) of the Customs Act, 1962, since the goods were already cleared and not available for confiscation and as the importers were liable for penalty under Section 112 of the Customs Act, 1962, a penalty of Rs. 8 lakhs was imposed under Section 112 of the Customs Act, 1962.

(2.) THE notice in this case was issued in respect of imports made on the two Bills of Entry under DEEC, VABAL scheme read with Notification No. 203/92 -Cus. The reason for the denial of the benefit of notification claimed and granted was that the importers were not to avail the benefit of input stage credit in lieu of Rule 56A or 57A of the Central Excise Act as per condition V(a) of the said notification. The said condition was not complied with.

(3.) THE appellants had submitted during the hearing that they had reversed the Modvat credit amounting to Rs. 14,55,246/ - though the amount of reversals were only Rs. 12,51,912.76 which as per the officers of Central Excise, deputed for this verification was Rs. 13,81,506/ -. These submissions were recorded, yet no finding was arrived at by the Commissioner, as to how the reversals of credit made were not adequate to obtain the benefit of the Amnesty Scheme announced by the Government. The order is found to have recorded that the appellant was to furnish the Certificate from the Central Excise authorities for which time up to 15 -11 -97, as sought was granted.