9911796707
TMI Blog2006 (3) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... a 100% Export Oriented Unit at Nasik for the manufacture and export of coated paper and coated film and other photo sensitised photographic materials. It applied for Letter of Permission and obtained it from the DGFT. It also imported certain machnery for use in the said manufacture and placed them in Customs Bonded Warehouse. 3. Subsequently, it reliased that the proposed business was not viable in view of technological developments in photography industry. A decision was taken not to proceed with the manufacture and export. Accordingly, it wrote a letter to the DGFT requesting permission to destroy the imported (warehoused) capital goods without payment of duty. Subsequently, vide letter dated 3rd November, 2003, it sought permissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o impose a penalty of Rs. 50,00,000/- (Rupees Fifty lakhs only) on M/s. Jindal Imaging Ltd. Tat. Mundhegaon. Dist. Nashik, under Sections 112 (a) and 114 A of Customs Act, 1962. 5. I also impose a penalty of Rs. 10,00,000/- (Rupees Ten lakhs only) each on S/Shri B.R Gupta and Sanjeev Agrawal, Directors of M/s. Jindal Imaging Ltd., Tal. Mundhegaon, Dist. Nashik under Section 112(a) of Customs Act, 1962, for contravention of provisions of Section 28 of Customs Act, 1962, however no penalty is imposed on S/Shri Umesh Chand Jain and Shammi Gupta, Directors. 6. I also order for enforcing of B-17 (General Bond) and warehousing bond executed with the department for the importation of capital goods etc. for appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to abandon the goods is mala fide. Commissioner has held that instead, the assessee should have gone for de-bonding of the warehouse goods. 8. We do not find legal or factual basis to the findings of the Commissioner. The proposal to set up a 100% EOU, obtaining of Letter of Permission and import of machinery pursuant to that decision, was an investment decision of the appellant. It is well-known that investment climate keep changing. Investors have to change their course of action depending upon such changes. The appellant has stated that the project had to be abandoned because of the technological changes in photographic and allied industries. Thus, there was no mala fide in the decision of the appellant to abandon the project a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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