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TMI Blog2000 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... el coils into cold rolled coils and strips. They also maintained a private bonded warehouse wherein imported HR coils were bonded and were ex-bonded therefrom from time to time on payment of duty. The appellants were availing of the Modvat facility. On a visit to the factory a number of irregularities were noticed by the officers. Seizure of unaccounted goods was made. Duty was demanded on goods surreptitiously manufactured and cleared. Duty on scrap cleared without payment of duty was demanded. It was alleged that certain goods were removed from the bond without payment of duty. Irregularities in the availment of Modvat were noticed. A show cause notice was therefore issued on 19-9-1995. The case was adjudicated by the Commissioner of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and evidence discussed above, I pass the following order :- ORDER Demand of duty of Rs. 2,19,88,058.32 on 7585.720 MTs of H.R. Coils is not sustainable and is therefore set aside. However in view of the lapses and irregularities committed by M/s. Steelco Gujarat Limited, Palej, a penalty of Rs. 25 lakhs is imposed on them under Section 112(b) of the Customs Act, 1962. Against the demand of duty of Rs. 1,30,67,235/- on 81 coils, I extend the benefit of doubt to M/s Steelco in respect of 25 coils covered by ex-bond bills of entry 18/94-95 dated 13-2-95, 24/94-95, dated 13-3-1995, 25/94-95 dated 14-3-95 and 26/94-95 dated 14-3-95. For the remaining 56 coils, I, confirm the demand of duty amounting to Rs. 94,45,276.43 under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition of penalty under section 112(b) of the Customs Act, 1962. This part of the order cannot be viewed as merely a citation of the wrong rule. Thus on the propriety as well as the legality the orders of imposition of penalty of Rs. 25 lakhs do not sustain and are set aside. 6. The total demand of duty of Rs. 1,30,67,235/- was made on the assumption that the assessees had surreptitiously cleared certain coils from the bonded warehouse. The grounds of this allegation was note written by Divakar and the background jottings. This note was written on the official stationery. It is admittedly written by Divakar. The perusal of the note gave rise to the impression that about 2700 MT had been removed unofficially. 81 coils had been removed unof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable. 7. We have seen the documents. Paragraph (D) of Divakar's note would suggest that "unofficial" issues were more than 81 coils amounting to 1600 MT but actually such irregular clearance was of 2700 MT. It may be that the duty which was paid prior to the writing of this note was in correction of the unauthorised issues made much earlier. But since this point had not been taken in the proceedings, we would not comment thereupon. We see merit in the plea that once the accountal had been done and once the duty on the 81 coils had been shown to have been paid, there was no cause for the Commissioner to confirm the demand of duty on the same goods merely because the duty was paid thereupon on a date later than that shown in the memorand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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