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2013 (9) TMI 424 - CESTAT AHMEDABADSEZ units - Procurement (import) of goods - authorized operation - import of old and used clothing for mutilation and for reconditioning. - Mis-declaration and Under-Valuation of Goods - Whether the goods were covered by the Letter of Approval and required for the authorized operations and can be admitted in the SEZ - Held that:- The confiscation ordered by the adjudicating authority of the goods which are as per Letter of Approval was incorrect and beyond his powers to do so – following the decision of SHILPA CREATION PVT. LTD. Versus COMMR. OF CUSTOMS (AIRPORT), KOLKATA [ 2007 (5) TMI 520 - CESTAT, KOLKATA ] - goods which were found as per Letter of Approval in both the containers, could not be confiscated, nor their value could be determined by the CC as the said goods were going to SEZ and proper Bill of Entry was filed with the authorities. Assessment of Value - Whether the assessment of the value, the SEZ Rules, 2006 specifically vest the jurisdiction in the Development Commissioner and the Authorized officer under Rules 27(2) and 29 respectively – Held that:- Commissioner of Customs has assessed the Bill of Entry filed by the appellant-assessee before KASEZ authorities which he is not empowered to do so as per the provisions of Rule 29 of SEZ Rules, 2006 - when the goods are meant for SEZ and on going to SEZ, they are not liable for Customs duty and hence any question of valuation being determined under the provisions of Section 14 of the Customs Act, 1962 does not arise. Confiscation of Goods u/s 111(m) and 111(d) – Held that:- the confiscation ordered by the adjudicating authority of the goods which are as per LOA is incorrect and beyond his powers to do so. Accordingly, the impugned order to that extent is set aside. Regarding goods not allowed or entitled to be imported into SEZ - Held that:- the Customs authorities, on suspicion, could inspect the consignment and on the inspection, if they find any items which are not allowed or entitled to be imported into SEZ, they are within their powers to seize the goods and act in accordance with the law. In this case, since the items like leather bags, purses, jackets, and carpets, are not included in LOA granted to the appellant for import into the SEZ for authorized operations, are liable to be confiscated and we hold it so. The value of the said goods should be determined in accordance with the law and the redemption fine be imposed in proportion to the value of such goods and imposition of proportionate penalties also needs to be imposed. - Decided partly in favor of assessee.
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