MAHALAKSHMI JEWELLERY LTD. Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THESE appeals arose out of the order of the Commissioner of Customs, Cochin. The appellant company is an unit in CEPZ.

(2.) BRIEFLY the facts are that the appellant company imported capital goods worth Rs. 50,12,426/ - and cleared the same without payment of duty under notification 256/87 -Cus. on execution of a bond binding itself to pay the duty foregone if the capital goods are not put to use in the production of jewellery for export as per the condition of the said notification. The allegation is that the appellant failed to fulfil the condition of the notification inasmuch as he failed to use the capital goods for the manufacture of the export goods. In the impugned order, the Commissioner confiscated the goods, imposed a redemption fine of Rs. 25 lakhs and imposed a penalty of Rs. 5 lakhs on the Managing Director of the appellant company M/s. Mahalakshmi Jewellery Ltd. Confiscation is under Section 111(o) and penalty is under Section 112 of the Customs Act. Hence the appeals.

(3.) HEARD both sides.