PRAGATI ASSOCIATES PVT. LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Since facts of both the appeals which have been filed against the common order -in -original, lie in a very narrow compass and the learned Counsel is prepared to argue the appeals on merits, the stay applications are allowed and the appeals are taken up for hearing on merits.

(2.) The facts are not much in dispute. The Company Appellant No. 1 imported four used/second -hand colour printing machines vide Bill of Entry No. 209949, dated 17 -5 -1999 and out of those, the Company disposed of two machines without seeking prior permission from the competent authority in violation of the Exim Policy 1997 -2002. Therefore, those two machines were ordered to be confiscated under Section 111(d) and 111(o) of the Customs Act. Since the machines were not available for confiscation, the adjudicating authority did not pass any order regarding the confiscation of the same. However, a penalty of Rs. 5 lakhs has been imposed on the company appellant No. 1.

(3.) Regarding the other two machines, there is no allegation of their disposal by the company Appellant No. 1. These machines had been ordered to be confiscated under Section 111(d) and 111(b) as the company had failed to put the same in actual use and thereby violated end -use condition of the Exim Policy. The adjudicating authority has ordered the confiscation of these machines and imposed redemption fine of Rs. 5 lakhs as well as the penalty of Rs. 4 lakhs on the company Appellant No. 1. The adjudicating authority has also imposed penalty of Rs. 4 lakhs on Appellant No. 2 being the Director of the Company under Section 112(a) of the Act.