Home Case Index All Cases Customs Customs + AT Customs - 2010 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (4) TMI 549 - AT - CustomsEOU - The present dispute relates to nylon yarn, raw silk yarn and nylon tube imported by the appellants duty free in the terms of Notification 133/94-Cus. dated 22-6-94. As per the appellants, they imported nylon yarn and subjected them to process of twisting and texturising and testing strength of the raw materials. They claimed that in respect of imported raw silk yarn also, they undertook twisting and texturising and strength testing. In respect of nylon tube, it is claimed by them that they imported nylon tube and subjected them to moulding, finishing and strength testing. The appellants claimed to have obtained the permission from the Development Commissioner and sold the 'finished goods' in the DTA market after availing the benefit of Notification 2/95-C.E., dated 4-1-95. The original authority held that the appellants have sold the above imported materials without subjecting to processes which could be considered as amounting to manufacture under the Central Excise Act and that they have not exported any of the goods "manufactured" using the above imported raw materials and in fact they did not have any machineries to manufacture the final product as claimed by them and accordingly demanded Customs duty amounting to Rs. 32,90,827.13 along with interest and imposed equal amount of penalty under Section 114A of the Customs Act on the appellant's firm and also imposed a separate penalty of Rs. 10.00 lakh on Shri Iqbal Ahmed, the proprietor of the appellant's firm. Held that - not clear whether appellant made any claim before Development Commissioner regarding actual export or undertook to export in future. Demand denying benefit of Notification No. 133/94-Cus. Upheld. Prnalty of Rs. 10lakhs imposed on proprietor justified.
|