RAJESH GANDHI Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) VIDE the impugned order the Commissioner of Customs has held that Titanium Dioxide valued at nearly Rs. 47.5 lakhs imported by M/s. Bhagwanji G. Trivedi is liable to confiscation under the provisions of Section 111(d) and 111(o) of the Customs Act, 1962 (goods were not physically available for confiscation), confirmed duty demand of Rs. 44,35,996/ - payable on the goods on the ground of violation of the provisions of Notification No. 203/92 under which they were imported duty free, for the purpose of utilization in the manufacture of export products but were instead diverted to the local market, and adjusted deposit of Rs. 18.80 lakhs against the confirmed demand and directed payment of balance duty by the importer, together with interest, and imposed penalties inter alia upon Shri Bhagwanji Trivedi. He has imposed a penalty of Rs. 20 lakhs each upon M/s. H.R. Trading Co. and M/s. Consumer Plastic Pvt. Ltd. and Rs. 20 lakhs on Shri Anil Parikh of M/s. H.R. Trading Co., and Rs. 5 lakhs on Shri Ajay Gandhi of M/s. Consumer Plastics Pvt. Ltd., under Section 112 of the Customs Act, 1962 and Rs. 5 lakhs each on Shri Bharat H. Shah and Shri Rajesh B. Gandhi under the provisions of Section 112 ibid.

(2.) WE have heard both sides.

(3.) PENALTY has been imposed upon the appellants on the ground that they had purchased goods imported duty free and cleared by M/s. Bhagwanji G. Trivedi against the advance licenses in respect of which the licence holder had not discharged its export obligation prior to such sale resulting in contravention of condition No. (vi) of Notification No. 203/92 -Cus dated 19/05/2002 which reads as under: Exempt material shall be utilized for discharge of export obligation and no part thereof shall be disposed of in any other manner before export obligation under the licence has been discharged in full and export proceeds realized