TMI Blog2018 (6) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... the Foreign Trade Policy and by following due process of law. When the recovery of duty itself is questionable, confiscation and imposition of penalty will not survive. Appeal dismissed - decided against Revenue. - C/434-A/2006-DB - 20739/2018 - Dated:- 23-5-2018 - MR. S.S GARG, JUDICIAL MEMBER And MR. P. ANJANI KUMAR, TECHNICAL MEMBER Mr. N. Jagdish For the Appellant Mr. G. Shivadass, Advocate For the Respondent Per: P. ANJANI KUMAR M/s. Perot Systems TSI India Pvt. Ltd. are STPI unit under 100% EOU scheme. They had obtained a private bonded warehouse license bearing No. 28/97-Cus. dated 10.6.1997 for manufacture/development and export of software. Customs Department alleged that respondents had imported goods wort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... development of software and goods were transferred to M/s. DSL Software Ltd. on Inter Unit Transfer (IUT) as permitted in terms of para 16,2 of Foreign Trade Policy relating to EOUs, EHPTs, STPIs during the relevant period. The appellant further submitted that transfer of capital goods made by them is permitted under Foreign Trade Policy and when goods are transferred in that manner, the export obligation shifts to the second EOU and as such, there is no loss of revenue to the Government. They have relied on M/s. GE India Technology Centre vs. Commissioner of Customs, Bangalore: 2009-TIOL-886-CESTAT-BANG. wherein it was held that there is no justification for demanding duty and imposing penalties when transfer of capital goods were made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d up the duty along with interest in response to the query of the department No formal show-cause notice was issued. The learned Commissioner has issued adjudication order confirming the duty and interest We find that no show-cause notice has been issued proposing confiscation of the goods and imposition of penalty. In such circumstances, going by the ratio of the judgment cited by the respondent, we find that no penalty can be imposed on the respondent and no confiscation can be ordered. It is very clear that the respondents have transferred the goods under IUT as permitted by the Foreign Trade Policy and by following due process of law. When the recovery of duty itself is questionable, confiscation and imposition of penalty will not survi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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