TMI Blog2006 (8) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... facture. They are also importing mountings and findings for the manufacture of export jewellery. The finding is a part of jewellery in the shape of clasps, hooks, pin backs, jump rings and ear-ring backs. Mounting is a piece of jewellery that is ready to have the gem stone set in it. The appellants are required to maintain proper records for the import of gold and expert of jewellery. According to the appellant such records were being maintained by them in the regular course of their business and were being verified and checked by the customs authorities as well as by the Development Commissioner. 2. The appellants premises was visited by the Central Excise Officers on 11-11-1995, who undertook physical stock of primary gold lying in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the customs Act, 1962. Hence the present appeal. 3. We have heard Shri T. Vishwanathan, ld. Advocate appearing for the appellant and Shri Manoj Krishna ld. SDR appearing for the Revenue. 4. The appellants have strongly contested the demand to be barred by limitation inasmuch as show cause notice has been admittedly issued beyond a period of six months from the relevant date in terms of Section 28 of the Customs Act, 1962. Commissioner while discussing the action proposed in the show cause notice for imposition of penalty under the provisions of Section 114(A), has observed that there was no collusion, wilful mis-statement or suppression of facts. Accordingly, he has dropped the said proposed action. For better appreciation we reproduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation. 5. As regards imports, we find that the major demand of duty is in respect of the gold procured by the appellant stands from MMTC, who have in turn imported the same. The Tribunal in the case of MMTC Limited v. Commissioner of Customs [2001 (128) E.L.T. 412 (Tri.-Del.)] has held that gold imported by MMTC limited and supplied to various units, are liable to pay duty where the same has not been used in accordance with the Notification 177/94-Cus. Reference against the above decision was rejected by the Hon ble High Court as reported in 2001 (133) E.L.T. 310 (Del.). As such, we hold that the demand in respect of such gold procured by the appellant from MMTC is mis-directed against the appellant. 6. As regards gold imported by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were being maintained in accordance with the Public Notice dt. 18-11-1993, as prescribed after representation made by the member units of SEEPZ. As such, the findings of Commissioner in this regard are also not sustainable. 7. We find that the Tribunal in the case of MMK Jewellers v. Commissioner of Customs, Mumbai [2003 (156) E.L.T. 722 (Tri.-Mumbai)], while considering a similar demand made in respect of wastage of gold, imported in terms of provisions of Notification No. 177/94-Cus. has observed that clause 10 of the notification specifically provides for loss of percentage of gold and such invisible wastage arising in the manufacture of jewellery of gold imported stands recognised by the Government. As such, confirmation in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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