TMI Blog2003 (8) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... based on provisions of law, the Bench does not find it necessary to give at this stage elaborate details of the case, but confine to the basic facts as under and relevant for the decision. 3. The main applicant is a 100% EOU registered with the Customs Department for in-bond manufacturing activity under the private bonded warehouse licence No. 16/97 dated 29-3-97, and are engaged in the manufacture and export of ready-made garments. They have imported fabrics made wholly or mainly of synthetic yarn and cleared them by availing exemption under Customs Notification No. 53/97 dated 3-6-97 as amended and Central Excise Notification No. 1/95 dated 4-1-95 as amended, applicable to a 100% EOU. Based on the intelligence gathered by DGCEI that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns have been filed. 4. A hearing was held on 25-7-2003. During the said hearing, neither the advocate for the applicants, nor the Revenue, made any submission on whether Section 123 of the Customs Act, 1962 (Act, for short) applies to most of the fabrics involved in the instant proceedings. The Bench, therefore, fixed another hearing on 14-8-2003 only to hear both sides on the maintainability of the applications in the light of the third proviso to sub-section (1) of Section 127B of the Act. 5. Shri B.V. Kumar, Advocate, represented the applicants, while none turned up for the Revenue. The ld. Advocate also filed a written submission as well. However, the ADG, DGCEI, Bangalore has submitted a report in his F. No. DGCEI/V/33/2003-04/BZU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld, (and manufactures thereof), watches and any other class of goods which the central government may by notification in the official Gazette specify. Since the major portion of the fabrics are the ones which are notified vide Notification 204-Cus., dated 20-7-84, the provisions of Section 123 will apply to the goods in question. Section 127B(1) lays down the conditions for admission of an application for settlement. Unless these conditions are satisfied, the application cannot be admitted. The third proviso to the above sub-section reads as follows : Provided also that no application under this sub-section shall be made in relation to goods to which Section 123 applies or to goods in relation to which any offence under the Narcotic Dru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) of Section 127B of the Act. The Bench is, therefore, of the view that no application can be made in relation to goods to which Section 123 applies even if such goods have been imported licitly. Even though in such cases the question of discharging burden of proof may not arise this is not relevant as, the question here is of making an application for settlement in relation to goods to which Section 123 applies. By a plain reading of the provisions in Section 127B(1), no application can be made in relation to goods to which Section 123 applies. As earlier stated most of the goods covered in the impugned SCN are the ones to which Section 123 applies. 9. Accordingly, the application of the main applicant cannot be allowed to be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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