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TMI Blog2008 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent M/s. HSBC, a STP Unit working under 100% EOU Scheme imported among other things the following goods, like Aluminium Doors, Door Hinges, Frame assembly and structures, Ventilation dampers, Water tap sensors, Fire fighting equipments and cables. These goods do not find an entry in the table annexed to the Notification 140/1991-Cus., dated 22-10-1991. Hence, Revenue proceeded against them on the ground that the above goods cannot be considered as capital goods used in the manufacture of goods or services and therefore not entitled for any exemption. The Adjudicating Authority confirmed the demand in respect of the impugned goods. Duty was demanded along with interest. In Para 'd' of the order he has stated that - "I hold the goods l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untarily in this case. It was further urged that there is no provision in this statute allowing for waiver of confiscation and penalty merely on the ground that the party has paid the amount before the issue of Show Cause Notice. Reliance was placed on the Apex Court's decision in the case of Z.B. Nagarkar v. UOI - 1999 (112) E.L.T. 772 (S.C.) wherein it is held that "it is not the intention of the law to provide protection and shelter to those assessees who first indulge in duty evasion by clandestine removal and thereafter seek to deposit duty by accepting liability". 7. Reliance was also placed on the following decisions: (a) Commissioner of Central Excise, Delhi v. Toshi Auto Industries Pvt. Ltd. - 2005 (183) E.L.T. 48 (Tri.-Del.) (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods were imported/procured only with the full knowledge and approval of the Customs Authority and Director I. In any case, once the lapse was pointed out, the appellant paid the duty voluntarily along with interest without waiting for Show Cause Notice. The authorities assessed the Bills of Entry granting the benefit of notification, the respondents had no intention to avoid payment of duty or did not have any mala fide intention. There was actually no suppression of facts with intention to evade duty. 12. When the goods were declared as per invoices and assessed by proper officers before extending the benefit of notification, no penalty is imposable in view of the following case laws. (a) Capston Rubber India v. Commissioner of CE., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department itself did not raise any objection at the time of import and indigenous procurement of goods free of duty. Nothing prevented, the department from denying exemption benefit even at the time of import and indigenous procurement. Having granted the exemption it is not proper to put the entire blame on the respondent after a period of three years on the ground that the impugned goods are not entitled for the benefit of the exemption notification. As rightly pointed out in the cross appeal, Section 111(o) would not be applicable. It is seen that only in order to buy peace the respondent had paid the entire duty along with interest before the issue of Show Cause Notice. All these facts have to be borne in mind while imposing penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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