TMI Blog2008 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... er (T) Shri S.G. Dewalwar, SDR, for the Appellant. Shri T. Jagapathi Rao, Consultant, for the Respondent. [Order per: T.K. Jayaraman, Member (T)]. - Revenue has filed this appeal against the Order-in-Original No. 16/2005, dated 17-8-2005 passed by the Commissioner of Customs, Bangalore. 2. Mr. S.C. Dewalwar, learned SDR appeared for the Revenue and Mr Jagapathi Rao, learned Consultant, for the respondent. 3. We heard both sides. 4. The respondent M/s. HSBC, a STP Unit working under 100% EOU Scheme imported among other things the following goods, like Aluminium Doors, Door Hinges, Frame assembly and structures, Ventilation dampers, Water tap sensors, Fire fighting equipments and cables. These goods do not find an en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue of Show Cause Notice. 6. Revenue is aggrieved over the impugned order on the ground that the Commissioner had held the goods liable for confiscation, but did not confiscate the goods and did not impose a redemption fine. Further, he ought to have imposed a penalty under Section 112(a) which is mandatory. Moreover, the duty and interest were paid only after detection of the violation by the department. Therefore, the duties cannot be set to have been paid voluntarily in this case. It was further urged that there is no provision in this statute allowing for waiver of confiscation and penalty merely on the ground that the party has paid the amount before the issue of Show Cause Notice. Reliance was placed on the Apex Court's decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emises of the respondents. 10. The goods covered by Bill of Entry No. 328863 dated 13-6-2002 are "Poweredge Server" eligible for exemption under Notification 140/91-Cus. They are covered by a Warehousing Bill of Entry. Mere omission in not making entries in the Register is not an offence, as the goods were installed and used in the unit. 11. The Customs Officer pointed out after three years of import/procurement of the goods that the said goods are not eligible for exemption. It is to be noted that the goods were imported/procured only with the full knowledge and approval of the Customs Authority and Director I. In any case, once the lapse was pointed out, the appellant paid the duty voluntarily along with interest without waiting f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the issue, we find that the impugned goods had been imported only with the knowledge of the department by following the prescribed procedure. The Director STPI granted approval for the import of the impugned goods. Moreover, the Customs Authorities assessed the goods after due examination. It is clear that the respondents had not done anything irregular to evade payment of duty. Even the indigenous goods were covered by CT-3 certificates. Assuming that the goods were not covered by relevant notification, it is a fact that the department itself did not raise any objection at the time of import and indigenous procurement of goods free of duty. Nothing prevented, the department from denying exemption benefit even at the time of import and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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