TMI Blog2012 (8) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... which the customs duty was foregone to advance license holders EOU – penalty set aside Regarding penalties on the Directors – Held that:- In the absence of any duty liability on the main Company, the provisions of Section 112 and 117 for imposition of penalties on the Directors cannot be invoked - to that extent it imposes penalty on the appellants herein, is liable to be set-aside - C/551 & 552 of 2003 - - - Dated:- 10-1-2012 - Mr. M.V. Ravindran, Dr. P. Babu, JJ. For Appellant : Shri J.C. Patel, Advocate For Respondent : Shri Rajendra Nagar, AR Per : Mr. M.V. Ravindran; These two appeals are directed against the order in original No. 09/Commissioner/2003 dated 08.05.2003, vide which the adjudicating authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitlements. It is his submission that they have not at all violated the conditions of Notification No 53/1997-Cus. He would also rely upon the Board Circular dated 22.05.2000 and specifically on the paragraph No.3 of the said circular. He also relied upon the Tribunal decisions in the case of Stonemanm Marble 2004 (166) ELT 84 (Tri.), Rioben International 2006 (198) ELT 55 (Tri. Bang.) and Kestrel Coats Pvt. Limited -- 2008 (232) ELT 293 (Tri. Chennai), for the proposition that penalty is not imposable on the appellant individuals. 4. Learned SDR on the other hand would reiterate the findings recorded by the adjudicating authority to submit that as per the provisions of Para 9.21 of Export Import Policy, EOU trading unit could not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e license or specific duty free entitlements, subject to achievement of positive NEEP. The said bond was executed by M/s. Evergreen Exim Pvt. Limited before clearing of the goods from the Customs department in the customs. 8. We find that the CBEC Circular No. 49/2000-Cus dated 22.5.2000 talks about amendments in Export Import Policy and in Hand Book of Procedures, 1997-2002, wherein CBEC clarifies in Para 3 as under :- 3. The provision concerning trading units in Paragraph 9.21 is in lieu of the earlier Paragraph, which dealt with setting up of private bonded warehouses in the EPZs. It may be noted that in case of these units the usual entitlements like DTA sale, deemed export benefits, inter-unit transfer, sub-contracting etc., ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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