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2018 (10) TMI 908 - AT - CustomsSEZ Unit - smuggling Gold - Confiscation - penalty - Held that:- There is no dispute about illicit transaction of gold bars as well as gold jewellery between M/s D. Jewel and M/s Choksi Vachhraj Makanji that the gold bars imported by M/s D. Jewel in their SEZ Unit were removed without any documentation and without following the procedure. The SEZ is area which is considered as foreign territory for all the purpose of taxation, duties etc. therefore, the goods cannot remove into and out side SEZ freely. The goods imported by SEZ are meant for either export as such or for manufacture of export goods. The appellant knowingly removed the gold bars of SEZ without proper procedure. The excuse given by the appellant is that there is an urgency to execute the export order, however, the law does not provide any relaxation for any reason, therefore, appellants have admittedly violated the provision of SEZ Act and Rules as well as the provision of Customs Act. The appellant could not get any relief only by mentioning the commercial reason, if the excuses given by the appellant is accepted it would lead the situation whereby giving any excuse whole scheme of SEZ can be planted. Penalty on partners - Held that:- High Court of Gujarat in the case of CCE, Vs. Jai Prakash Motwani (Supra) categorically held that when the penalty on partnership firm is imposed no separate penalty should be imposed on the partner as a partnership firm is consist of partners - separate penalty on the partner should not be imposed. Penalty on employees - Held that:- They are mere employees working under the direction of their employer firm - penalty not justified. Appeal allowed in part.
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