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TMI Blog2008 (5) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sambi Reddy, learned Departmental Representative, for the Revenue. 3. The assessee or the party is a 100% EOU. They had permission and licence for manufacture and export of Granite slabs and tiles. They were also permitted for the manufacture and export of finished marble slabs and tiles. The Departmental Officers visited the unit and conducted certain investigations In terms of the policy, a 100% EOU can also clear finished goods in the domestic tariff area with the permission of the Development Commissioner. In the present case, the party obtained permission for clearance of the finished products into the domestic tariff area. In fact, in terms of the invoices raised by them they cleared sawn marble slabs classifying them under 2515.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs as regards the demand of duty and interest on the imported item. However, for certain irregularities in the maintenance of accounts, he imposed a penalty of Rs. 10,000/- only under Section 117 of the Customs Act. The party in their cross appeal they have appealed against the imposition of the penalty of Rs. 10,000/- on them. The Revenue is aggrieved by the order of the Commissioner (Appeals) setting aside the demand. The grounds of appeal of the Revenue are as follows: (a) The learned Commissioner (Appeals) has erred in holding that the appellants had not contravened the permission granted to them by CSEZ for sale of marble rejects to DTA. While seeking permission from the Development Commissioner, CSEZ, M/s. Nova Granites (I) Ltd. in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izing only on that portion of the permission which says that clearance of rough stone shall not be permitted while ignoring that portion of the permission which says that only finished items are allowed for DTA clearance. As such, there is clear infringement and violation of the permission granted and hence the Commissioner (Appeals) order is not legal and proper. (b) The learned Commissioner (Appeals) has erred in holding the 'sawn marble slabs' by M/s. Nova Granite (I) Ltd. as 'finished items' contrary to the views expressed in Tribunal Judgment in the case of Collector of C.Ex., Jaipur v. Fine Marble and Minerals Pvt. Ltd. - 1985 (22) E.L.T. 128 (Tribunal). The Hon'ble Tribunal in the said case had held that the manufacture of articles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. (d) Sri Ratnam S. Narasimhan, Production Manager of the unit and Sri P. Ajit, Manager, Finance of the unit in their statements recorded under Section 108 of Customs Act 1962 have admitted inter alia that the 'sawn marble slabs' cleared into DTA were only rough marble slabs without polishing. In other words they have admitted that the 'sawn marble slabs' cleared by M/s. NGIL had not undergone all the processes required for being converted into finished items. (e) The statements relied upon by the Original Authority, in the order, are the statements recorded under Section 108 of Customs Act 1962, and are given by responsible personnel of M/s. NGIL. It is well settled that, statements recorded under Section 108 of Customs Act are admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has observed that this contention of the party was an after thought and that this was an aspect which the appellants need to take up with the competent jurisdictional authority for correct interpretation and assessment of the goods in future for classification purpose. By taking this stand, he has accepted the classification of the impugned goods under ch.s.h. 2515.12 during the relevant period. When classification of the said goods is made under ch.s.h. 2515.12, it follows that the impugned goods were merely cut/sawn marble slabs which were not finished goods and clearance of the same to DTA was not in accordance with the permission given by CSEZ. On this ground also, the order appears to be not in accordance .with the law. The Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the item sold by the party is different from the price of the rough marbles and the cost of conversion has also been included. In view of the above, we are of the considered opinion that there is no infirmity in the Order of the Commissioner (Appeals). 6. As regards the imposition of penalty under Section 117 of the Customs Act, it is seen that there have been certain irregularities in the maintenance of the accounts and a clear finding has been given by the Commissioner (Appeals) on this point. Therefore, we do not find that the penalty imposed is extremely harsh. It is very reasonable. Therefore, we do not want to interfere with the order of the Commissioner on this point. In fine, we dismiss department's appeal and also as regards the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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