2012 (7) TMI 144

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..... that, the appellants herein were the Directors of one M/s. Evergreen Exim Pvt. Limited, who was registered with the authorities as 100% EOU trading unit, set up under Para 9.21 of the Export Import Policy 1997-2002 and had imported goods duty free by availing benefit of Notification No. 53/1997-Cus dated 03.6.1997. M/s. Evergreen Exim Pvt. Limited had subsequently sold these duty free goods against the advance license to another 100%EOU. The adjudicating authority has held that the said M/s. Evergreen Exim Pvt. Limited, being 100%EOU trading unit could not have sold the goods under advance license as per the provisions of Para 9.21 of the Export Import Policy. Coming to such a conclusion, he ordered recovery of the customs duty, imposed pe .....

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..... ion that as per this paragraph, the appellant being EOU trading unit could not have supplied the goods to another EOU, hence they have violated the provisions of Notification No 53/1997 and appellants in this case being the Directors of the main appellant Company, are liable for imposition of penalty under Section 112 and 117 of the Customs Act, 1962.   5. We have considered the submissions made at length by both sides and perused the records.   6. The undisputed facts herein are that the appellant is 100% EOU trading unit and had valid license to perform as such. While importing goods duty free under Notification No 53/1997-Cus, appellant had executed bond before the Deputy Commissioner of Customs, Gandhinagar. It is also undis .....

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..... DTA against valid advance licences or specific duty-free import entitlements. The notifications governing duty free procurement and import by EOU/EPZ units have been amended suitably to incorporate the said changes. (Emphasis supplied)   9. It can be seen from the above reproduced CBEC Circular that EOU trading units were allowed to supply the goods to other EOU/STP units against valid advance license or specific customs entitlements. In the case in hand, it is undisputed that M/s. Evergreen Exim Pvt. Limited had cleared the goods imported by them on which the customs duty was foregone to advance license holders EOU. If that be so, the CBEC Circular would squarely cover the issue inasmuch as, there cannot be any duty liability on the .....

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