BINANI CEMENT LTD. Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) M /s. Binani Cement Ltd. is engaged in the manufacture of clinker and cement falling under Chapter 25 of the Central Excise Tariff Act, 1985. The appellant imports steam coal required for its manufacturing activities from time to time. The imported goods can be cleared on payment of applicable customs duties or exemption under Notification No. 34/97 -Cus. Dt. 7 -4 -1997 can be availed, which requires the importer to produce DEPB licence. The appellants utilized two DEPB licenses No. 0910004790 and 0910004831 for import of steam coal cleared under bills of entry No. 4647 & 4648 dt. 12 -1 -2001 through Customs House, Kandla. They had purchased these two licenses in the local market and the licenses were originally obtained by M/s. Sri Vishnu Merchants. These licenses were transferred to Kandla by issue of Transfer Release Advice issued by Supdt. of Cutoms, ICD, Hyderabad, which facilitated utilization of licences by the appellants.

(2.) THE Jt. Director General of Foreign Trade, Hyderabad, the licensing authority cancelled both the DEPB licenses ab initio vide order dt. 13 -5 -2002 and the IEC No. of M/s. Sri Vishnu Merchants was also suspended on 13 -5 -2002 by the JDGFT.

(3.) A show cause notice was issued and after due adjudication process, the Commissioner passed an order confirming the demand of duty Rs. 46,23,273/ - with interest as applicable and penalties of Rs. 10 lakhs each on Sh. Sanjay Aggarwal, Sh. Bimal Kumar Jain, Sh. Naresh Jain and Sh. Rajesh Jain and Rs. 46,23,273/ - on Shri Rajnish Agrawal, Proprietor of M/s. Sri Vishnu Merchants. Hence these appeals.