SRINI PHARMACEUTICALS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) These appeals are directed against Order -in -Original No. 629/2003 -CAU dated 17 -4 -2003 by which the ld. Commissioner has demanded a sum of Rs. 29,85,674/ - towards payment of duty. However, he allowed adjustment of Rs. 19,44,378/ - already paid by the importers towards the amount of duty mentioned above. He has also demanded interest under clause (ii) of Customs Notification Nos. 30/97 and 31/97, dated 1 -4 -97 and the party was permitted to adjust an amount of Rs. 8,69,634/ - already paid by them towards the interest payable by them. The Commissioner has also confiscated the inputs as detailed in the SCN of even no. dated 28 -11 -2002 under Section 111(o) of the Customs Act, 1962. However, as the goods were not available for confiscation, he ordered that the appellant -assessee shall pay an amount of Rs. 1.00 lakh towards fine in lieu of confiscation. He also imposed penalty equivalent to the duty amount of Rs. 29,85,674/ - and the interest payable thereon as worked out at the time of payment under Section 114A of Customs Act, 1962. He however did not propose to impose separate penalty under Section 112(a) but held that this penalty can be treated as imposed under Section 112(a) also. Ld. Commissioner has also imposed a penalty of Rs. 5.00 lakhs on Shri T; C. Reddy, Managing Director, M/s. Srini Pharmaceuticals Ltd. under Section 112{a) of the Customs Act, 1962.

(2.) The brief facts of the case are that on specific intelligence that the appellants are misusing the benefit of DEEC Notifications, investigation was carried out by the officers of Anti -Evasion, Hyderabad III Commissionerate, which revealed the following:

(3.) Heard both sides.