SAJAWAT INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS misc. application seeks for stay of the order of confiscation in terms of Rule 41 of the CESTAT (Procedure) Rules. On a careful consideration and after due hearing of the matter, the Bench is of the considered opinion that such an order against the order of confiscation of the goods cannot be granted as prima facie, the goods imported have been confiscated for non -compliance of the terms of Notification. Therefore, the misc. application is rejected.

(2.) THE appellants are seeking waiver of pre -deposit of the duty of Rs. 2,38,23,605/ - and penalty of Rs. 50,00,000/ - besides a personal penalty of Rs. 10,00,000/ -. Therefore, both the stay applications are taken up together for disposal as per law.

(3.) THE appellants had imported capital goods under EPCG scheme for manufacture of final products and to export the same. The import was pertaining to 12 machines worth Rs. 4.75 crores and 3 machines worth Rs. 24.74 lakhs. The appellants did not fulfil the terms of the EPCG scheme in manufacturing and exporting the goods. Therefore, proceedings were initiated for recovery of the customs duty and for imposition of penalty. The learned Counsel had made a submission that they were eligible for the benefit of lower duty. In view of this submission, the Commissioner was permitted to file his report. The learned SDR has filed the para -wise comments in the matter.