9911796707
TMI Blog2006 (10) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... redeem the same on payment of fine of Rs. 35,000/-, (b) confirmed customs duty demand of Rs, 1,36,030/- against M/s. Kansal Texo Tube Pvt. Ltd. (100% EOU) on 1800 kgs of imported polyester filament yarn seized at the premises of M/s. Jay Krishna Sizers and ordered to be confiscated and Rs. 3,64,559/- on 4824 kgs. of imported polyester filament yarn seized at the premises of M/s. Carewell Rayons Pvt. Ltd. and ordered to be confiscated (total duty demand is Rs. 500589/-), (c) imposed penalty of Rs. One lakh under Sec. 112(a) of the Customs Act upon the 100% EOU, and (d) imposed penalty of Rs. 50,000/- on its Director under the provisions of Sec. 112(b) of the Customs Act and Rule 209A of the Central Excise Rules, 1944 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials in their factory. No statutory records were found in their premises for receipt or consumption of raw materials. Statements of the Director of the 100% EOU and of the partner and authorized signatory of M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd. respectively were recorded. Investigations revealed that the 100% EOU were involved in the clandestine removal of imported PFY received by them duty free under Notification No. 59/98 for manufacture of export goods, that they diverted the imported raw materials in connivance with the brokers and their buyers (M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd.) and obtained sale proceeds in cash. Such diversion amounts to contravention of the provisions of Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of the Director of the 100% EOU. The only argument raised before us that the 100% EOU was not the importer and therefore, could not be held liable to duty, and that duty demand, if at all, could be raised only against M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd. who purchased imported raw materials and to whom provisional release of the goods was allowed, cannot be accepted for the reason that the Director of the 100% EOU had admitted that the EOU had imported PFY duty free and no document has been produced to show that the goods were imported by someone else, and the option to redeem the goods seized from the premises of M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd. has been given to 100% EOU. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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