9911796707
TMI Blog2019 (5) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... EOU to any job worker. The Department working on an intelligence searched the premises of M/s Royal Industries Ltd. (100%) EOU and it was detected that M/s Royal Industries Ltd. have been diverting duty free imported raw material into domestic area in violation of the provisions of the customs act as well as the scheme of 100% EOU pronounced by the Government of India. From the investigations, it transpired that the Royal Industries Ltd. has sent a quantity of 74892 Kgs of Acrylic Fibre for conversion into yarn on job work basis to the appellant. It has further been noticed by the investigating agency that out of 74892 kgs of Acrylic Fibre, the appellant have manufactured a quantity of 8520 kgs of yarn and returned the same to M/s Royal In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ylic Fibre received from the M/s Royal Industries Ltd. and the part of yarn was supplied back to the 100 EOU firm on valid documents. Since the balance yarn was not lifted by the supplier, namely M/s Royal Industries Ltd. the appellant after accounting for the same in their RG-1 register and in the other statutory records, have cleared the same on payment of the appropriate Central Excise duty. With this back drop of the facts, the learned Advocate has referred to the provisions of Section 112(b) and has contended that for invoking the provisions of penalty under this Section, the goods has to be "liable by confiscation", since the appellant have dealt with the goods which were duly covered with the appropriate job work documents and the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and find that the provisions of Section 112 (b) of the Customs Act, 1962 provide as under :- (a) who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 111, or abets the doing or omission of such an act, or (b) who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111, (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty [not exceeding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds or the difference between the declared value and the value thereof or five thousand rupees], whichever is the highest.] It can be seen from the provisions of Section 112(b) as given above that for invoking the provisions of Section 112(a) or 112(b) of the Customs Act, 1962 the subject goods need to be made 'liable of confiscation'. We find that so far as the appellant is concerned the goods were duly covered by prescribed job work documents and the same were also taken on record in the books of the accounts of the appellant, therefore, we find that the quantities which have been received by the appellant were not liable for confiscation as the same were covered by legitimate documentation. It has also been the matter of record that all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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