TMI Blog2018 (11) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... nsequential redemption fine is upheld. Confiscation of the goods at the premises of Maruti Trading Company and Ashok Industries - Held that:- As per reconciliation provided by the appellant, the goods shown to have purchased by both the units are well within the duty paid goods cleared by M/s. Saffire Clothing Co. Pvt Ltd. Moreover, there is no evidence of movement of goods without payment of duty from SEZ to M/s. Maruti Trading Company and Ashok Industries. Since, there is physical checking at the check post and no evidence was found that any goods over and above the goods recorded, which were cleared on payment of duty were found, it cannot be said that the goods found in the premises of M/s. Maruti Trading Company and Ashok Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieces of readymade garments i.e. Ladies Wear namely, Pyjamas, Lady Wear (top) etc. (packed with 16 card board boxes) valued at ₹ 2,36,700/- was placed under seizure on the ground that they were being clandestinely removed from KASEZ into DTA. Subsequently to the seizure of said goods the officers searched the premise of M/s Maruti Trading Co., Gandhidham and seized 1835 pieces of readymade garments ladies nigh wear valued at ₹ 20,71,260/- on the ground that these goods were clandestinely removed by the appellant M/s Saffire Clothing Co. (P) Ltd. from KASEZ without payment of duty. On the same date i.e. on 28.09.2007, the officers also searched the premises of M/s Ashok Industries at K-14, GIDC, Gandhidham and placed 267 pieces o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Three Thousand Seven Hundred Twenty only) against M/s/ SCCPT on the goods referred to in S1 No. (i) above under proviso to section 28 (1) of Customs Act, 1962 along with interest leviable thereon in terms of section 28 AB ibid. (iii) I order for confiscation of 1835 pecs of readymade garments ladies nightwear totally valued at ₹ 20,71,260/- seized from the premises of MTC, GIM under section 111 (j) of Customs Act, 1962 and in terms of section 125 (1). I impose redemption fine of ₹ 5,00,000/- on SCCPT IN regard to the said goods. (iv) I confirm the demand for duty of ₹ 4,70,082/- against M/s SCCPL on the goods referred to in Sl. No. (iii) above under proviso to section 28 (1) of Customs Act, 1962 along with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... padiya, proprietor of M/s Ashok industries under section 112 (a) of (xiv) I drop the proceedings against 43932 pcs of readymade garments ladies nightwear totally valued at ₹ 1,81,41,737/- envisaged in para 32.1(i) and (ii) of the show cause notice. Show cause notice no. S/10-43/2007-Adj. dated 25.3.2008 issued by Custom House, Kandla is disposed of in above manner. Being aggrieved by the above order, the appellant filed present appeals. 3. Sh. S. J. Vyas Ld. Counsel appearing on behalf of the appellant submits that as regard the goods seized at check post gate since the goods were available within the premises of SEZ. No duty was liable to be paid, the duty is payable only when goods are cleared out of the SEZ prem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sustainable. As regard the confiscation of 266 pieces seized from Ashok Industries, he submits that the said goods was received by Ashok Industries from Maruti Trading Co. out of the duty paid stock, therefore, clandestinely removal of the goods seized at Ashok Industries is not proved. Without prejudice he submits that as regard the goods seized from M/s Ashok Industries the appellant had no dealing with M/s Ashok Industries, therefore, whatever goods seized from M/s Ashok Industries has no relation with the appellant Co. M/s Saffire Clothing Co. Pvt. Ltd. For this reason also the seizure of goods at Ashok Industries cannot be related to the appellant Company M/s Saffire Clothing Co. Pvt. Ltd. Therefore, M/s SCCPL cannot be made responsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises, however the goods were not cleared out of SEZ, therefore, no liable to duty at that stage. However, since, there was attempt of clandestine removal, the goods were correctly liable for confiscation. Hence, the confiscation of the goods i.e. 789 pieces of readymade garment and consequential redemption fine is upheld. However the confiscated goods as and when redeemed and cleared out of SEZ premises, the same should be liable for duty. Since, at the stage of confiscation duty is not chargeable, and the goods were within the SEZ premises, penalty attributed to said duty of ₹ 53,720/- is also set aside. As regard, confiscation of the goods at the premises of Maruti Trading Company and Ashok Industries, we find that as per reconcilia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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