TMI Blog2017 (6) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... nformity with the permission granted under the Foreign Trade Policy. Consequently, the goods are liable for confiscation - there is no flaw in the demand for duty and in imposition of penalty. M/s Vishal Export Overseas Ltd was the beneficiary of the availment of concessional rate of duty as well as the escapement of anti-dumping duty. In the absence of any evidence to show that the transaction was a bona fide one, the imposition of penalty on them is not invalid. The roles of S/Shri Prashant Tanna, Ajay Tanna and Pradeep Mehta have been elaborated in the impugned order and no evidence has been led to controvert these findings. M/s Pet Plastics was also able to clear goods into the Domestic Tariff Area (DTA) without payment of fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess at the premises of M/s Suprapti Packaging Daman and for advance 'domestic tariff area (DTA) sale' of the pharmaceutical product valued at ₹ 1,74,72000/- till 31th March 2003. 3. Investigation has alleged that M/s Suprapti Plastics Ltd conspired to obtain the inclusion of a new product in Letter of Permission (LoP) from the Development Commissioner, SEEPZ under the Export Oriented Unit (EOU) scheme in the Foreign Trade Policy to enable procurement of 'ascorbic acid' without payment of duties (including anti-dumping duty) and to make it available to M/s Vishal Export Overseas Ltd at ineligible concessional rate of duty. Allegedly, the unit procured 15 MT of 'ascorbic acid' from M/s Pet Plastics Ltd, a u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 22,17,392/- was confirmed on the goods lying with M/s Suprapti Plastics Ltd. Further liability of ₹ 1,00,38,364/- was confirmed on 25.48 MT of 'ascorbic acid' that had been used in the clearances effected to M/s Vishal Export Overseas Ltd. Penalty of ₹ 1,00,00,000/- each was imposed on M/s Suprapti Plastics Ltd. Shri Prashant Tanna, M/s Vishal Export Overseas Ltd and Shri Pradeep Mehta and ₹ 50,00,000/- each on Shri Ajay Tanna and M/s Pet Plastics Ltd. 6. The core issue for determination is the claim of the appellants that a new product, in accordance with the permission granted by Development Commissioner for addition to the list of goods to be manufactured and exported by M/s Suprapti Plastics Ltd, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the decision of the Hon'ble Supreme Court in Laminated Packaging Pvt Ltd v. Commissioner of Central Excise [1990 (49) ELT 326 (SC)]. 7. We have heard Learned Authorised Representative urging us to accept the findings of the original authority in the impugned order. 8. It is seen that the Letter of Permission accorded to M/s Suprapti Plastics Ltd was specific to 'coated/compacted tab/capsules of pharmaceutical products' and the advance Domestic Tariff Area (DTA) sale permission was restricted to such products for a value of upto ₹ 1.74 crores. It is common ground that the goods that were cleared to M/s Vishal Export Overseas Ltd was 'coated ascorbic acid' and that the said item was brought into existence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies thereof. There is, thus, no flaw in the demand for duty and is imposition of penalty. 11. M/s Vishal Export Overseas Ltd was the beneficiary of the availment of concessional rate of duty as well as the escapement of anti-dumping duty. In the absence of any evidence to show that the transaction was a bona fide one, the imposition of penalty on them is not invalid. The roles of S/Shri Prashant Tanna, Ajay Tanna and Pradeep Mehta have been elaborated in the impugned order and no evidence has been led to controvert these findings. M/s Pet Plastics was also able to clear goods into the Domestic Tariff Area (DTA) without payment of full duties that were otherwise applicable. No evidence is brought on record to show that this was a bona ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
