TMI Blog2014 (9) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... were found to be in fully assembled condition – Therefore confiscation, redemption fines and penalty was imposed – Held that:- appellant contented that even sets which were found in assembled condition, were to be subjected to certain further processes like feeding IMEI number, checking bluetooth, checking and adjusting parameters of phones, etc., before same could be exported and these processes amount to manufacture in terms of definition of ‘manufacture’ in SEZ Act – Also, in terms of Section 53(1) of SEZ Act, 2005, SEZ is deemed to be territory outside Customs Territory of India, and goods imported were meant for unit in SEZ Noida – Commissioner had no jurisdiction to confiscate these goods and impose penalty on appellant and it is only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icers. While in the consignment imported by M/s. Morgan Tectronics Ltd. out of 1200, sets, 1150 were found to be in fully-finished condition and only 50 pieces of mobile phones in SKD condition, in the consignment imported by M/s. Pertech Exports (P) Ltd., out of 2300 pieces, 1190 MP were found in finished condition and only 1110 pieces were in SKD condition. The Customs officers were, therefore, of the view that the description of the goods had been mis-declared. Both the consignments were, therefore, placed under seizure. After issue of show cause notice, the Commissioner of Customs, Air Cargo, New Customs House, New Delhi by two separate orders - No. ACE/DDR/17/2009, dated 2-3-2010 and No. ACE/DDR/18/2010, dated 3-3-2010 in the case of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules made thereunder, the units are allowed to import the goods without payment of duty for use in the manufacture of the goods for export as well as trading activities, that assessment of the bills of entry is done by the Customs officers appointed under SEZ Act, and the SEZ Rules, that the goods are to be examined by the SEZ Customs officers and suitable follow-up action is taken up per the SEZ Act and the Rules made thereunder, that Section 53(1) of the SEZ Act provides that SEZ shall be deemed to be territory outside the Customs Territory of India, that the provisions relating to the offences by SEZ units are contained in Sections 2(t), 21 and 22 of the SEZ Act, that the specified officers to carry out Customs functions are defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions, the impugned orders are not sustainable. 5. Smt. Suchitra Sharma, ld. Jt. CDR defended the impugned orders by reiterating the Commissioner s findings and emphasized that even in respect of the goods imported by SEZ units, the Customs officers have jurisdiction to confiscate the same and impose penalty on the importer, if the goods are found to be mis-declared in respect of the quantity, description or value or the goods have been imported in contravention of the prohibitions imposed under Section 111 of the Customs Act, 1962. 6. We have considered the submissions from both the sides and perused the records. 7. The only misdeclaration alleged is that while in both the cases the consignments were declared to be of mobile phon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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