Per S.S. Sekhon :

Appellants had imported in 1994 certain goods and availed the DEEC notification exemption from payment of duty since they held a valid DEEC Import licence as transferee. In 1999 a show cause notice was issued proposing to deny the benefit of exemption availed and granted on the grounds of an allegation made in the show cause notice that an incorrect declaration was made as regards MODVAT availment on inputs used in the manufacture of products exported while in fact such benefit was availed. Consequently duty free benefit on the said DEEC import licence produced by this transferee was held to be not available. Duty was therefore confirmed jointly and severally on the licence-holder and the transferee and the penalties under Section 112 (a) of the Customs Act, 1962 were imposed on both i.e. licence-holder Rs. 3 lakhs and transferee Rs. 1 lakh. Transferee is in appeal in this case.

2. After hearing both sides and considering the issue, it is found :

a) There are two views held by the orders of this Tribunal Bench as regards the eligibility to the benefit of the Custom Exemption notification in such matters. While one set of case decided by the Tribunal as in the ca